Continuing our discussion about valuation of software services companies, let’s focus on the market valuation approach. A central technique under this approach is the comparative transaction method. It is especially useful for valuing private software firms. In a nutshell, the method lets you determine the value of your software firm in comparison to similar companies that have… Continue Reading
If you own a private mailing business or need to appraise one for a client, here are some interesting statistics to consider: Mail box rental and shipping companies are classified under the SIC code 7389 and NAICS 561. This business services sector has just under 1,500,000 firms that generate over $301B in annual revenues. The… Continue Reading
One of the key factors that affects the value of a company is the industry in which it operates. So the question is why and by how much? The answer is risk. In fact, the industry-specific risk premium is one of the elements that make up the discount and capitalization rates for your business. And… Continue Reading