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.

Archive for January, 2010

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

When it comes to valuing a business, size matters. The main reasons for this is that companies of different sizes face very different risks. Most investors believe that large companies are less risky than their small counterparts. Other things being equal, the smaller firms need to generate higher returns to compensate their investors for the… Continue Reading

One of the key factors that affects the value of a company is the industry in which it operates. 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. Here are… Continue Reading