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.

Why should you concern yourself with adjusted present value? Now you probably heard about the present value. In other words, the company’s worth in present day dollars. You create a forecast of business earnings, build up your discount rate, and crunch the numbers. And the discounted cash flow valuation spits our your present value number.… Continue Reading

At some point in your business life you will likely run across a business valuation report. It may look like a brief opinion of value or a detailed work product which leaves no stone unturned. Some points to consider when reading a business valuation report. Read the report before jumping to the business value conclusion… Continue Reading

So what is a universal app for a Mac? You may have heard – Apple is in the process of transitioning to its own processor design. That’s right, Apple has decided to ditch Intel and go with their own silicon. What does it mean to you as a Mac user? Well, software apps you have… Continue Reading

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

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

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