We talked about assumptions that underlie any business appraisal. Business valuation results differ mainly because the analysis relies on a different set of factors that drive business value. Just how sensitive your business appraisal result is to changes in these assumptions in an important question. It is a good idea to show in your report… Continue Reading
It is well known that all business valuations are done as of a certain date. It is possible to prepare a business appraisal at some point in the past. One benefit of this is that you have some ideas as to how things actually turned out. In fact, professional business appraisals are sometimes done as… Continue Reading
The concept of control premium in business valuation is this: to obtain control of a business the investor usually has to pay the per-share price that is higher than what a single share of the company stock sells for. Why would an investor seek a controlling share of a company? Because with control come a… Continue Reading