Every business valuation relies upon a set of assumptions about how the economic environment will look some time in the future. Once the assumptions are made, the business appraiser can make forecasts for the business being valued. If you take a look at a typical business valuation report, there is usually a section outlining the… Continue Reading
You may have heard this: business value fluctuates as time goes on. Fair enough, but the question you may ask is what factors best capture this change? Here is our short list: Discount rate Capitalation rate Valuation multiples The reason these numbers are in a constant state of flux is that the marketplace conditions vary… Continue Reading
You might think: if all business appraisers follow the standards such as USPAP and AICPA SSVS how come the results differ? The main reason is that clients influence the outcome of professional business valuations. Business people have a reason for business appraisals and an idea of their own of what the company is worth. The… Continue Reading