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.

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

When all hell breaks loose, you may wonder: how does it affect your business valuation? Apart from broken windows and missing merchandise spirited off by those who thrive on turmoil, what do social upheavals do to business value? Good question. Let’s take a look at the fundamentals. No matter what causes the stir in the… Continue Reading

Once in a while you run across business valuation projects that must defer to special requirements.  Sometimes they appear to be in conflict with major business valuation standards. As an example,  your local court may call for just a market based business valuation even though the USPAP or International Valuation Standards (IVS) expect you to… Continue Reading

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

Another major milestone in our business valuation software development – we have just rolled out ValuAdder 11. Redesigned from the ground up ValuAdder gets a fresh new look in this version. Whether you do your business valuation on a Mac or PC, ValuAdder looks and feels the way you’d expect. Using both Mac and PC… 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