Almost all business owners think that the business would be worth nothing without them. Maybe the business owner is the primary sales person or driver of the business, or maybe they have all the relationships with all of the clients, or maybe they have special training or a proprietary process that makes them unique. I think most business valuation people understand that the business is heavily reliant upon the main owner, especially in small businesses, but that usually does not mean that the business is worth nothing if the owner steps aside.
Read More
One of the purposes of calculating EBITDA is to get to a cash flow number which can be compared to others in your industry. It is also a number which a buyer would expect to earn from the company after the sale.
Read More
Business Valuation Purpose: What is Valuation or Evaluation? Why does the company value change depending on the valuation PURPOSE? Are you looking to understand how to value a company?
Read More
What is Fair Market Value? Fair market value as a term has many meanings. As a term in business valuation it has a specific meaning.
If you own a business and are getting divorced you may consider your current CPA to value your business. Here are some questions to ask!
Read More
The income approach considers historical income, future revenues of a company, the earning potential and also capital requirements, or how much will be needed to invest in the building and equipment to support future revenue growth.
Read More
The reality is that alimony, child support and company valuation issues are complicated matters. Business valuations are usually handled by people who have many years of experience and a business valuation credential such as CVA, ABV or ASA which are just some of the available certifications.
Read More
There are some common questions business owners ask about valuation discounts when getting an appraisal of their company. What is the discount for lack of marketability?
Read More