ValuAdder Business Valuation Blog

Business valuation tips, updates and advice. Pick up a few suggestions on how to value a business. Feel free to browse the contents or share your thoughts by leaving a comment.

Businesses recognize the value of contracts if they offer advantages in terms of lower operating expenses, competitive position, or critical asset retention for some period of time. Consider the important types often seen in successful companies: Leases of business premises. Supplier and other vendor agreements. Employment contracts with key staff members. Licensing rights. Franchise agreements.… Continue Reading

When business appraisals come under the scrutiny of courts, lawyers on both sides reach out to appraisers to testify as expert witnesses. Who gets selected? Usually, attorneys tend to pick the professionals who offered such expert opinions in court before. But how does an appraiser get selected for the first time? Clearly, an attorney decides… Continue Reading

Business appraisers try really hard to be objective in order to produce a realistic and well supported business valuation result. So can a business appraisal be objective and yet differ from another valuation of the same company by a different appraiser? The answer is yes. Why? Because business valuation is always about the future. So… Continue Reading

Value to whom? Now this one puzzles many a business person. Isn’t value of a business asset a single number? In other words, each asset has ‘the’ value. Not quite. Consider an example: A manufacturer of business equipment incurs costs of labor and materials to create a product. Let’s say the manufacturer calculates this as… Continue Reading