Liquidation Value Can Shape Critical Business Decisions
Most business valuations focus on the company’s value as a going concern, but some situations call for a different premise of value. When a business is […]
M&A Spotlight: Business Valuation Guidance Remains Critical After Closing
Business owners often turn to valuation professionals for help during the merger and acquisition (M&A) process. However, their expertise extends beyond establishing reasonable price expectations, structuring transactions and evaluating deal terms. Valuators can continue to […]
Owner’s Compensation: A Critical Business Valuation Adjustment
Owners’ compensation can be a subjective — potentially contentious — issue when valuing a closely held business. Here’s an overview of how business valuation professionals evaluate and adjust for owners’ compensation when assessing normalized earnings.
The […]
A Business Valuation is Critical to a Successful PE Transaction
For a business owner, selling the company to a private equity (PE) firm can be one of the most significant financial and strategic events of his or […]
FAQs About Using the Market Approach to Value a Business
The market approach is based on a straightforward premise: A company’s value can be derived from the prices others pay for similar businesses. But, in practice, this technique isn’t […]
Demystifying Discount Rates Used in Business Valuations
Valuation professionals often use discounted cash flow (DCF) techniques to determine the value of a business or estimate economic losses. A critical input in a DCF model is the […]
Special Considerations When Valuing Start-up Businesses
Valuing an established business typically starts with analyzing historical financial performance. However, most start-ups have never generated positive cash flow (or even revenue), which presents unique challenges. Applying standard […]
FLP on Trial: Tax Court Denies Valuation Discounts
A family limited partnership (FLP) can be a powerful tool for consolidating and managing family wealth while reducing gift and estate taxes, in part through valuation discounts. However, the […]
Beyond EBITDA: Key Factors That Affect Business Value
Obviously, financial statements play a critical role in valuing businesses for mergers and acquisitions (M&As). Prospective buyers turn first to financial metrics […]
How Market Volatility May Affect Valuation Discounts for Lack of Marketability
When determining how much a business is worth, a valuation professional must evaluate current market conditions — and today’s marketplace is […]
