Archive for June, 2015

Business valuation: when market comparables are not enough

Whenever the issue of business valuation comes up, the subject of the best method selection is sure to follow. Perhaps the most common is the market approach. Market based valuations let you compare a target company to other similar firms whose value is known. Such is the case if a number of comparable companies have… Continue Reading

Applying the income approach to start-up valuation

The income approach assumes that investors have a number of alternatives to put their money into, from risk-free government debt, such as US Treasurys, to venture backed start-ups. In an efficient market, sensible investors demand greater returns for assuming the extra risk. The value of a start-up is seen in the context of this question,… Continue Reading