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.

Apple ups the ante again on the security front – beginning with MacOS 10.14 Mojave and its successor MacOS 10.15 Catalina, software apps need to be notarized. That’s in addition to the Apple Developer ID code signing already enforced by your MacOS system to identify the software products and their developers to Apple Mac users.… Continue Reading


If you are creating a business valuation report that must comply with the venerable USPAP standard, you have a choice to make: should your report follow the Restricted or Appraisal report format? What is going on here? Restricted Report format – for client only The USPAP Standard 10 draws a distinction between the restricted and… Continue Reading


Even the most experienced business appraisers are often confused: 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 The question is worth considering: values of controlling shares of business ownership can be a lot higher than the typical… Continue Reading


Valuing a civil engineering firm in the heavy construction industry? Some sector statistics to consider: There are over 32,600 establishments in this highly competitive industry in the USA alone. Together these companies generate about $256.3 billion in annual revenues. The average civil engineering firm makes some $7.8 million in sales per year employing about 30… Continue Reading


If you are valuing a business, assessing the company’s earning capacity and risk should sound familiar. Risk estimation gives you the all-important discount rate to plug into your business valuation, especially with the discounted cash flow method. Business appraisers use a number of ways to calculate the discount rates. The best known of these are… Continue Reading


If cash is king in business, then an accurate picture of business earnings is king in business valuation. That’s because business value is all about the company’s earning power and risk. It goes without saying then, that a business with a history of superior earnings is more valuable than its less profitable industry peers. Investors… Continue Reading


If you are planning on valuing a business in an international setting, consider complying with the International Valuation Standards (IVS). Just about in any jurisdiction where business assets are valued, standard compliance is key and the IVS rules the roost. One of the key requirements under the IVS is a properly conducted fact finding investigation.… Continue Reading


If you are valuing a business with a view to sharing your appraisal results with other business people or professionals, it is a good idea to make sure you comply with major standards. Perhaps the most important and best known professional standard governing all kinds of appraisals, including business valuation, is the venerable USPAP, or… Continue Reading


Ask a finance professor about the best business valuation method. The answer will be there are three approaches to choose from. When pressed for a simple answer though, even the professor would admit that nothing beats the market comps for valuing a business. Benefits of market comps in business valuation Just think of all the… Continue Reading


With all the reasons business people have for business valuation, it’s small wonder that business appraisers have come up with a plethora of services to address their clients’ requirements. Not all business valuation experts offer all the services. Many firms specialize in certain areas, such as litigation support or estate planning help. So you may… Continue Reading


Having trouble finding a set of business sale comps to figure out what your company is worth? You are not alone. While the market approach to business valuation offers undeniable advantages when valuing a company, it suffers from one flaw – you need to have reliable, current, and transparent business sale comps. Valuing public company… Continue Reading


Just think about it: where would the world be today without all the software apps? The technology pace is dizzying with new and sometimes even useful software apps popping up seemingly every minute. Whether you are using a smartphone, enjoying a moment doodling on a tablet, or hunker down to some serious work on a… Continue Reading


If your company is like most businesses, you may have noticed the familiar picture – some business assets that appear on the books are no longer around, while others that are being used all the time are not recorded. When it comes time to pay business property taxes, it could make a difference as to… Continue Reading


Discounted cash flow method, or DCF for short, is well known in business valuation. You forecast business earnings, assess business risk in the form of discount rate and calculate business value in present day dollars. But the DCF method is also a great way to calculate your discount rate. To do so, you make the… Continue Reading


Now you must think someone is joking, right? Surely, there is no such thing in business as excess earnings. As the saying goes, the more the better. Don’t get confused though – in business valuation, as in many financial analysis areas, technical definitions make all the difference. Excess earnings – more than a pretty name… Continue Reading