Ask any seasoned business appraiser and you will hear that business value is about future expectations. Business people invest in companies because they expect returns on their investment. Business historic performance is only interesting in so far as it enables you to estimate future returns. Opportunity cost – making your best investment bet Financial gurus… Continue Reading
If you run across a business whose value seems to be too good to be true, you may be right. Since business valuation relies upon the estimates of business earnings, overstated earnings could easily be misleading. While reasons for inflated business earnings are legion, here are the top five ones to watch out for when… Continue Reading
Whenever you run across a business appraisal for a privately owned company, the choice of discount and capitalization rates pops up. These parameters let you assess company risk, an essential element of valuing any business. The income based business valuation requires that you provide an accurate estimate of business earnings along with the discount and… Continue Reading