Let’s face it: business valuation shouldn’t require a PhD in finance or a $10,000 data subscription. Yet most tools force you to hunt down critical inputs like cost of capital or industry multiples yourself. Not anymore. With ValuAdder, all the heavy-duty data you need is baked right into the software. No guesswork. No extra fees.… Continue Reading
Can you confine yourself to just analyzing a company’s financial statements in order to figure out its value? The answer is no. Why? Because business value is revealed by both its earning capacity and risk. The higher the business earnings and the lower the company’s risk, the higher its value. On the other hand, a… Continue Reading
You may have noticed that major energy producers Saudi Arabia, UAE and Iran have joined BRICS or plan to do so. The block already includes two of the world’s largest economies China and India. Add to this the global heavy weights in the energy sector and the block’s power appears to be growing apace. Now,… Continue Reading
For those contemplating the sale of their assets there is a historic lesson to learn. The 1867 sale of Alaska by Russia to the United States for $7.2 million or about two cents per acre, has long been regarded as a historic bargain. But it also highlights how Russia undervalued the territory’s immense potential. At… Continue Reading
You may have heard the term “crony capitalism”. What’s in the name? Well, crony capitalism is all about very cozy and close relationships between big business and big government. As such it flies in the face of free and open markets in several ways: Lopsided Competition Importantly, crony capitalism creates an uneven playing field where… Continue Reading
Money printing is a monetary policy tool used by the US Federal Reserve (the Fed) to stimulate the economy. While it can provide short-term economic relief, it has long-term consequences that can erode the value of the US dollar. Here’s how: Increased Money Supply When the Federal Reserve prints money, it increases the overall money… Continue Reading
The US dollar, commonly known as the “greenback,” holds a unique and influential position in the global economy. Today it is the world’s primary reserve currency. As such it serves as the dominant medium of exchange in international trade and finance. So what are the history, reasons, and implications of the US dollar’s status as… Continue Reading
There is no better way to lend credibility to your business appraisal than comply with established and widely recognized standards. Two such primary standards often come into play: Revenue Ruling 59-60 and the Uniform Standards of Professional Appraisal Practice (USPAP). Both of these standards are crucial in their respective domains, yet they serve different purposes… Continue Reading
In business valuation, two methods stand out: Capitalized Earnings and Discounted Cash Flow (DCF). Which one should you choose for your appraisal projects? Each method brings its unique perspective to the table, offering you a different way to view the value of a company. Capitalized Earnings: a snapshot of stability Capitalized Earnings is a valuation… Continue Reading
If you pick up a business appraisal report you are very likely to run across the market comparables or comps used in value analysis. In essence, the comps let you compare the target business to similar businesses that have been sold recently. While this method has its merits, relying solely on market comps can be… Continue Reading
Choosing the appropriate earnings basis for your business valuation is key. One choice made by professionals is the Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). However, like any tool, it has its pros and cons, which merit careful consideration. Pros Isn’t using the accounting EBITDA measure of income enough? Some additional points: Normalization… Continue Reading
You can use business valuation for various transactions, including mergers and acquisitions, investment decisions, and even internal assessments of the company’s value. Among the methods employed in business valuation, revenue multiples have gained popularity for their simplicity and accessibility. However, while revenue multiples can offer you quick insights, relying solely on them can lead to… Continue Reading
For a company a key measure of success is its ability to create a steady and predictable income. In other words, the business must generate desired returns for its owners given an acceptable level of risk. No other business valuation method captures this idea better than the discounted cash flow valuation method. What is Linear… Continue Reading
Creating an earnings forecast can be challenging when the current year is not yet completed, and only partial data is available. In this blog post, we will explore two methods of creating an earnings forecast with a partially completed year: using only historical data, and using proration. Method 1: Using Only Historical Data One way… Continue Reading
In business, meetings of decision makers are often seen as valuable networking opportunities and sources of valuable insights. However, not all gatherings are created equal, and the Davos meeting of elites is a prime example. Perhaps larger corporations may find such events useful. But gatherings of this kind often prove to be irrelevant for small… Continue Reading