Archive for January, 2017

Business valuation, GAAP financials, and normalizations – why all the fuss?

Ask any professional business appraiser and you will get an earful about the financial statements, adjustments and the true economic income estimation. Why all the fuss? In a perfect world, you should be able to figure out business value by just using the company’s financial statements. After all, don’t the income statements and balance sheet… Continue Reading

Business valuation: EBITDA or Net Cash Flow?

What type of business earnings do you use in private business valuation? The difference could be huge, the results misleading. Public or private, business value is about returns at a level of risk you can accept. Risk is typically captured in the form of discount or capitalization rates. You can calculate these by using the… Continue Reading