Before you can apply business valuation methods, you should determine the level of cash flows generated by the company. The question here is what cash flow? For the purposes of business appraisal, the net cash flow is the typical choice. Definition of net cash flow Net income, after tax Plus depreciation and amortization Plus tax… Continue Reading
If you discuss business valuation with a professional, chances are you will hear the notion of standard of value. Think of this value standard as a measuring stick the appraiser uses to come up with the business value. Selecting the correct standard of value can make a difference to the result. The circumstances and facts… Continue Reading
If you are like many business people you probably use a number of computers in your work. For example, you may have a PC workstation in the office and a Mac laptop or iPad tablet at home. Sometimes you may find it convenient to continue a project at home that you started in the office.… Continue Reading
Before you can use any method for business valuation you need to prepare a number of key inputs that the methods require. Usually, you would start your analysis with a set of the typical business financial statements such as its income statements and balance sheets. But the accounting financial statements are just a starting point.… Continue Reading
You may be aware that market comparisons are a common tool to value private businesses. Not surprisingly, this methodology gets a full coverage in ValuAdder business valuation software. In fact, the ValuAdder Market Comps tools use a combination of the industry-standard Comparative Transaction and Guideline Public Company methods under the market approach. This gives you… Continue Reading
Looking beyond the support for the USPAP and AICPA SSVS No 1 standards? ValuAdder team has added compliance with the International Valuation Standards (IVS) to our flagship business valuation and reporting solutions, ValuAdder and Report Builder. IVS adoption as the national business valuation standard The IVS have become the national valuation standards in Australia, New… Continue Reading
Over the recent years we have compiled a wealth of resources on private business valuation and made them freely available to business people and professional advisors like yourself right on this website. Determining the value of private businesses and professional practices has always been a challenge – both for business people and professionals. Despite the… Continue Reading
If you plan to buy or sell an online business, you will be glad to know that the market for privately owned Web based companies is alive and well. In addition to many individual business buyers, Internet businesses often attract larger players – corporate buyers and private equity investors. Such business buyers can pay a premium… Continue Reading
A major component of the ValuAdder business valuation software is the financial worksheets. What is the purpose of these? In short, to help you streamline your valuation projects. And to do so, we have focused on the key step in your business valuation: financial statement reconstruction. Key step – financial statement reconstruction or normalization In… Continue Reading