Hospitality industry continues to grow at a rapid pace. In addition to the major markets including business and luxury hotels, motels and country inns, recent growth has been fueled by the addition of privately owned establishments that tend to focus on lucrative niche markets. These include specialty bed and breakfasts, destination location inns, fitness oriented… Continue Reading
Brand names and trademarks are an important type of business intangible assets. Most successful businesses have these valuable assets in one form or another. Think of business trade names or product and service trademarks used to distinguish business offerings in the competitive market place. As a business builds customer following, the value of its brand names… Continue Reading
One of the benefits of using asset based business valuation methods is that you can see how each business asset and liability contributes to business value. This is very useful for a number of important reasons: Estimation of business value for tax purposes. Business purchase price allocation. Determination of which business assets are available as… Continue Reading
Whenever you value a business based on income, you need to address two questions: What are the business earnings likely to be in the future? What level of risk is associated with getting these earnings on time and in full measure? Financial forecasts are a typical way to estimate future business income. The goal is to… Continue Reading
AICPA has finally done it! After years of work, the latest Statement on Standards for Valuation Services (SSVS No. 1) has been adopted as of January 1, 2008. While upholding the substance of the earlier USPAP business valuation and reporting standards, SSVS No.1 introduces several new definitions and requirements for professionally prepared business appraisals. Business… Continue Reading