Financial statements provide the data to support prices in mergers and acquisitions (M&As). But are those reported results reliable and sustainable? After all, the value of a business is based on expected future earnings, not […]
Business valuation professionals routinely rely on public stock market data when valuing private businesses. However, experts also recognize the key differences between public and private companies and adjust their analyses to generate reliable and defensible […]
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 […]
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 […]
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.
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 […]
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 […]
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 […]
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 […]
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 […]
