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.

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


Valuing a business by discounting its cash flows? Guess what’s lurking in the discount rate. Yep, the renowned equity risk premium. Better yet, business appraisers like to drop a formal name for this number – the implied equity risk premium. What is going on? Well, to start with, take a look at the way the… Continue Reading


Pick up a text book on corporate finance and you will run right into the discounted cash flow valuation method. It is so important that it usually deserves a chapter on its own. Students sweat it, professors hammer in the fundamentals, professionals remember the bruising experience studying the DCF method for years afterwards. So what’s… Continue Reading


If you are valuing businesses internationally, it is wise to consider compliance with the International Valuation Standards or IVS for short. These standards cover valuation of all types of assets world-wide, including businesses, real property, personal business property, market securities and more. In the United States, the USPAP set of standards has long governed how… Continue Reading


You heard the old adage, ‘time and tide wait for no man’. None more apt than in business appraisal. You don’t have to go back a ways to see why. Remember the heady days of the Great Recession? Businesses were trembling in anticipation, markets creaked at the seams, and politicians spouted their usual platitudes and… Continue Reading


In the complex world of business valuation keeping things simple may seem as a distant dream. Just think about the challenges faced in valuing a company: analysis of economic conditions, forecasting business earnings, assessing risk, choosing the right valuation methods and interpreting results that may puzzle the unwary. With so many moving parts, it’s small… Continue Reading


Putting the business on the market? Valuing the business to set the right asking price or make an acceptable offer is half the battle. Stray but a little and the deal is bound to go south. You have a choice of three approaches to business valuation, namely the asset, income, and market. Of these three… Continue Reading