Business Valuation Resources
Succession is inevitable in a business. When the time comes to start thinking about retiring and/or transferring ownership, it is essential to understand common issues related to the process.
The three approaches appraisers use to value a business are essentially a matter of common sense. You start with the balance sheet and adjust the book values of assets and liabilities to their market values.
The words “Business Value” or “Business Valuation” by themselves hold more than a singular definition.
There are several applications in which the valuation of your business can deliver insight for guiding critical strategic decisions. For example, below are some common scenarios in which a valuation of your professional service firm may be helpful:
Most owners already have a predetermined number in their mind when the time comes to establish the value of a company. They Most owners already have a predetermined number in their minds when the time comes to establish the value of a company.
Most business owners are reactive when it comes to having their businesses valued. But there are many times it pays to be proactive.
When valuing a business, experts use various valuation methods, such as Discounted Cash Flows (DCF) analysis, comparable company analysis, market value, and asset-based methods. When using DCF method, one way to select an appropriate discount rate for the business is to use the built-up method.
The business valuation industry is a sector of professional practice that is highly respected but often misunderstood. A misconception is that a business valuation expert can develop a value by merely looking at a company’s financial statements and determining if a company is financially healthy and an expected sale price.