ValuAdder Business Valuation Blog

Business valuation tips, updates and advice. Pick up a few suggestions on how to value a business. Feel free to browse the contents or share your thoughts by leaving a comment.

Archive for the 'Business Valuation Tips' Category


When it comes to business valuation, the market approach reigns supreme. Think about it – where else can you glean the values of businesses better than from the active, observable market place where companies change hands every day? Unsurprisingly, the International Valuation Standards or IVS for short, accord a special place to the market-based valuation… Continue Reading


Valuing a business? You would do well to heed the requirements of the USPAP standards. USPAP is a short form for the Uniform Standards of Professional Appraisal Practice. These renowned standards govern valuation of all types of assets, including real and personal property, collectibles, and businesses. Business valuation is covered in USPAP standard 9, while… Continue Reading


Half the battle in business valuation is to clearly state what is being valued. Your business appraisal would be misleading unless you define what equity or debt capital is included in your value calculations. Equity is just another term for owners’ interest in the business. If you are valuing a corporation this ownership interest is… Continue Reading


No surprises there – business valuation delves into some pretty sensitive information. Think about it – generally no public record of a private company financial performance, let alone its value exists. Business owners are not usually ecstatic telling the world how much they are worth. If a private business is put up for sale, business… Continue Reading



Even the most experienced business appraisers are often confused: do the discount or cap rates apply to valuing minority or controlling business ownership interests? One share of company stock – a classical minority ownership interest The question is worth considering: values of controlling shares of business ownership can be a lot higher than the typical… Continue Reading


If you are valuing a business, assessing the company’s earning capacity and risk should sound familiar. Risk estimation gives you the all-important discount rate to plug into your business valuation, especially with the discounted cash flow method. Business appraisers use a number of ways to calculate the discount rates. The best known of these are… Continue Reading


If you are planning on valuing a business in an international setting, consider complying with the International Valuation Standards (IVS). Just about in any jurisdiction where business assets are valued, standard compliance is key and the IVS rules the roost. One of the key requirements under the IVS is a properly conducted fact finding investigation.… Continue Reading


If you are valuing a business with a view to sharing your appraisal results with other business people or professionals, it is a good idea to make sure you comply with major standards. Perhaps the most important and best known professional standard governing all kinds of appraisals, including business valuation, is the venerable USPAP, or… Continue Reading


Ask a finance professor about the best business valuation method. The answer will be there are three approaches to choose from. When pressed for a simple answer though, even the professor would admit that nothing beats the market comps for valuing a business. Benefits of market comps in business valuation Just think of all the… Continue Reading


With all the reasons business people have for business valuation, it’s small wonder that business appraisers have come up with a plethora of services to address their clients’ requirements. Not all business valuation experts offer all the services. Many firms specialize in certain areas, such as litigation support or estate planning help. So you may… Continue Reading


Having trouble finding a set of business sale comps to figure out what your company is worth? You are not alone. While the market approach to business valuation offers undeniable advantages when valuing a company, it suffers from one flaw – you need to have reliable, current, and transparent business sale comps. Valuing public company… Continue Reading


If your company is like most businesses, you may have noticed the familiar picture – some business assets that appear on the books are no longer around, while others that are being used all the time are not recorded. When it comes time to pay business property taxes, it could make a difference as to… Continue Reading


Discounted cash flow method, or DCF for short, is well known in business valuation. You forecast business earnings, assess business risk in the form of discount rate and calculate business value in present day dollars. But the DCF method is also a great way to calculate your discount rate. To do so, you make the… Continue Reading