When an economic downturn strikes, one thing is sure to follow: business sales grind down to a halt. In uncertain times moving forward with a major investment entails risk. Business buyers stay on the sidelines afraid to make a bad acquisition that goes south. Business owners step back unwilling to sell their companies for a… Continue Reading
When a business faces a sharp downturn, it may begin to look like a lot of disconnected parts moving in multiple directions. That’s the sign of the times – a systemic threat such as a natural or man-made crisis can wreak havoc with a business that normally runs like a well built clockwork. Effect of… Continue Reading
Cataclysmic events such as deadly pandemics are a major risk to people and businesses everywhere. Business value is all about risk and return. So it should come as no surprise that risky times bring changes to business values. What do the public capital markets tell us about the effect of the Covid-19 pandemic? Just take… Continue Reading
Is there a project you can take on without the threat of infection? Yes indeed! Catch up on your business valuations in the comfort and safety of your home or office. Do your business valuation – and avoid the crowds Get your business valuation software on your laptop or desktop computer, sit back, do some… Continue Reading
You may wonder: is it possible to use the established business valuation methods and still come up with erroneous results? You bet. Moreover, it happens all the time, even in professional business appraisals. The culprit is, as usual, between the chair and the computer screen, as the saying goes. Put seriously, your assumptions, depth of… Continue Reading
If you are considering doing a business valuation, prepare to face the inevitable: you will need to equip yourself with a business valuation software to do the job. Business valuation on a Mac and PC is the new normal Most business people and professionals are armed with an array of computing devices these days. Think… Continue Reading
The 2020 – 2021 update to the venerable USPAP standards is out and there are some changes you should know about. Perhaps the most noteworthy is the change to the format of the Restricted Appraisal report. It is now allowed to include additional parties as the intended audience besides the client. This works as long… Continue Reading
It should come as no surprise that cyber crooks are always after your money. So doing business valuations makes you a most desirable target for the criminals. Think about it – business valuation deals with money, lots of it. In fact, business ownership may be the most valuable possession people hold. Yes, business values even… Continue Reading
If you are looking to figure out what a private business is worth, a natural tendency is to check the market for guidance. Think about it – whenever you need a product or service, a key question is how much to shell out. The question of a reasonable price for an asset is usually seen… Continue Reading
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? Then 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. And these renowned standards govern valuation of all types of assets, including real and personal property, collectibles, and businesses. USPAP standard 9 covers business valuation. In… 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 you have 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… 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
Ever wonder why business appraisers take their time to come up with an accurate, defensible opinion of value? If you thought the devil is in the details, you are on the right track. What is included in your business valuation? To keep things interesting, business valuation can measure business value to just about any definition.… Continue Reading
Even the most experienced business appraisers get confused on occasion. 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 Why should you care? Because values of controlling shares of business ownership can be a lot higher than the… Continue Reading