Business valuation methods under the income approach are a frequent choice in professional business appraisals. These business valuation techniques are favored because you can determine your business value accurately based on two important factors: business earnings and risk. There are three key assumptions that help make your income-based business valuations highly relevant and accurate: Business people have alternative investment opportunities.… Continue Reading
In the US alone, business owners and managers spend over $1 billion a year to determine the value of businesses and professional practices. So what are the reasons that prompt business people to conduct business valuation? Here are the most common ones: Buying or selling a business. Gift and estate (ad valorem) taxes. Securing debt or equity financing.… Continue Reading
Another ValuAdder milestone completed – we have just released ValuAdder V3.5.7. In addition to a number of performance enhancements, we have focused on the key step in your business valuation: financial statement reconstruction. In valuing a business, the historic financial statements are a starting point. To get an accurate business valuation, you need to adjust… Continue Reading
If you are in an industry where businesses sell often, chances are there is plenty of data to estimate your business value by comparison with similar businesses. A common way to do so is to use the so-called pricing multiples. These pricing multiples are ratios which relate some measure of business financial performance to its… Continue Reading
