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.
All manner of confusing euphemisms pop up in various contexts. So you shouldn’t be surprised when you hear about pre-revenue companies. Young companies in the early stages of their development sometimes want to get an appraisal. For example, business owners may need to reach out for external funding or address issues such as deferred compensation… Continue Reading
If you own a successful business, you know how to create value. You put together the machinery and equipment you need, hire smart people, raise the money to run the operation. Then you build some exciting new products and services and hope they will come. You know, the paying customers. But let’s imagine you have… Continue Reading
Ever wonder how valuations of small and large businesses differ from each other? To be sure, some things should be obvious. For example, a big bell weather corporation looks a lot different than a mom and pop shop around the corner. Now compare a single owner-operator professional practice to a multinational firm. A tiny private… Continue Reading
With all the dollar printing going on, many business people wonder: what if the US government fails to repay its mounting debt? What effect would this have on the global financial markets? And, more importantly, how will this affect what my business is worth? Risk free rate of return and discount rate The devil, as… Continue Reading
What are buyouts and dissolutions? And why would you need a business appraisal in these situations? Now most business owners prefer smooth sailing to abrupt shifts in direction of their companies. Once in a while, though, you may face the need to address challenges that call for a change in ownership structure. When this happens,… Continue Reading
To many business people business valuation looks like a big bang event. In other words, it rarely happens and then it’s over. Indeed, appraisers usually do valuations in support of some strategic need, such as selling or buying a business. Also, courts often require appraisals in cases of legal disputes. Moreover, tax authorities use valuation… Continue Reading
Why do you need to keep your business valuation software updated? Because there is no such thing as vintage software. Why not? Here are just a few reasons your business valuation software keeps changing all the time. Market data changes As market conditions change, so do the parameters you should use in your business valuation.… Continue Reading
The CAPM cost of capital model requires no introduction. It is used by business appraisers, savvy investors, and even the general public on occasion. Ask your friendly securities broker about betas. You will be regaled with a list of investment prospects with different levels of risk and return, along with the beta number for each… Continue Reading
You may wonder how a casual check on business value differs from a professionally prepared business appraisal. For instance, out of curiosity business people may run a quick and dirty calculation to ball park the value of their company. But when business people approach their professional advisors for help, business valuation takes on a whole… Continue Reading
By popular demand from our customers, we have added this gem of a valuation method to an already extensive selection of tools available in ValuAdder software. Normalize your financial statements to get ready for valuation ValuAdder financial worksheets always gave you the ability to run the Capitalized Earnings valuations. First, you go through the financial… Continue Reading
Once in a while in a life of many businesses a ‘bad actor’ manages to cause harm. Enough to disrupt business operations and lead to a loss of earnings or even a long-term business damage. Unsurprisingly, business owners take a dim view of such actions and bring a legal action to redress the injury. In… Continue Reading
It goes without saying that in business valuation time is money. Moreover, a typical business appraisal is no walk in the park. So being able to quickly organize and speed up your work translates into big savings. Given the choices in valuation approaches and methods, you need to review and revise your assumptions quickly. So… Continue Reading
Valuing a business? Then doing a market comparison against similar business sales should ring the bell. Indeed, both seasoned valuation pros and business people find the market approach to business valuation easy to grasp. Do your market comps hold water? But, as often in life, the devil is in the details. In fact, the International… Continue Reading
You know the drill – buying and selling shares of stock in public companies is just a mouse click away. You pick up a few shares you like, hold on to them as long as you want, then unload them if you like the current market price. Sounds easy enough, but here is a trick… Continue Reading
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