Business valuation methods under the income approach feature prominently in professional business appraisals. These business valuation techniques work 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… 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 prompts business people to conduct business valuation? Here are the most common reasons: Buying or selling a business Business acquisition is perhaps the best known reason to value a business. If… Continue Reading
A major component of the ValuAdder business valuation software is the financial worksheets. What is the purpose of these? In short, to help you streamline your valuation projects. And to do so, we have focused on the key step in your business valuation: financial statement reconstruction. Key step – financial statement reconstruction or normalization In… 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
