ValuAdder Business Valuation Blog

Archive for the 'Business Valuation Tips' Category

All manner of confusing euphemisms pop up in various contexts. So you shouldn’t be surprised when you hear about pre-revenue companies. Young companies in the early stages of their development sometimes want to get an appraisal. For example, business owners may need to reach out for external funding or address issues such as deferred compensation… Continue Reading

Struggling to understand how the capitalized excess earnings valuation works? You are not alone. With quite a few ‘moving parts’, this venerable valuation method has tripped even the most experienced business appraisers. But it does not have to be intimidating. Let’s dissect the enigma by stepping through the calculations step by step. First, note the… Continue Reading

Tired of blowing wads of money on overpriced database subscriptions? In business valuation, like in many things, the devil is in the details. Without a thorough work up of the cost of capital you can’t get usable discount and capitalization rates. Slick data brokers would have you believe that they somehow create the market data… Continue Reading

If there is one professional endeavor that has a lot of proverbial moving parts, it is business valuation. Small wonder you face a number of standards that govern how you should do your business appraisal. The accountant’s standard – AICPA SSVS No 1 A relative new comer to the field is the Statement on Standards… Continue Reading

Business sales tend to drop during economic downturns. None more so than in the midst of a world wide pandemic affecting all customer facing companies. Are you are doing business on the Web? Then your customers may be distracted dealing with a host of problems caused by the troubled economy. Business sale comps It is… Continue Reading