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 June, 2010

One of the central business valuation techniques under the income approach is the discounted cash flow method. It lets you calculate the business value based on three fundamentals: Business earnings forecast, usually annual cash flows. Discount rate which captures business risk. Long-term business value, known as the terminal value. The standard discounting valuation formula assumes… Continue Reading

It is a standing joke in the business appraisal profession: the business valuation is out of date the moment it is delivered to the client. Business valuation has an expiration date In fact, a key assumption for any business valuation is the date on which it is done. Why is the date so important? Here… Continue Reading