Archive for April, 2011

Business valuation: estimating the size of a private company

If you are valuing a privately owned business, the income-based valuation methods are probably high on your list of tools. To use these methods, such as the Discounted Cash Flow technique, you need to determine the discount and capitalization rates. Income based business valuation methods and company size If you take a look at the… Continue Reading

Business valuation size risk premia for small companies are rising

One of the key elements in business valuation of any size is risk assessment. Whether you use the direct capitalization methods, such as the Multiple of Discretionary Earnings technique, or the Discounted Cash Flow method, you need to calculate the capitalization and discount rates to capture that risk. Business valuation and risk measurement The Build-Up… Continue Reading