How Do I Value My Business? Within industry-accepted frameworks, there are three main valuation approaches, with each approach having various valuation methodologies within it. We’ll keep this article simple, while giving you the insight into how you can view your business in relation to the valuation process. For the most complete and robust valuation process, […]
One of the principal tasks a small business owner must complete often and accurately is business valuation. Yet, for many small business owners, “business valuation” is a loaded phrase, and one to avoid. Frequently, however, this aversion to business valuation is a result of a fundamental misunderstanding. (Keep reading to understand the Definition And Meaning […]
If you are business owner, accountant, investor, or, simply a fanatic of business valuations, and, have ever wondered Why Do I Need A Business Valuation? We encourage you to take a look into this article to solve all of your doubts and questions related to this topic. A major mental block to the (necessary) process […]
In order to understand What Does A Business Valuation Cost, we need to understand the fundamentals of a Business Valuation. Due to this reason, we encourage you to read this article to solve all of your doubts regarding this type of service and its pricing. Business Valuation is the process of finding an objective measure […]
This post will take a dive into the enterprise value concept—an important concept in private business valuations. As its name suggests, enterprise value (EV) is the measure of a company’s total value. It includes all asset claims and ownership interests from both debt and equity holders, thus enabling an investor to compare companies with different […]
What Is the Market Approach Valuation? The market approach valuation is one of the three approaches to value a business, along with the cost approach and income approach. In simpler terms, the market approach determines the value of a business based on the price of transfer or the value of comparable businesses (or even the same business). This valuation […]
The cost approach values a business based on the net assets (total assets minus total liabilities) a business holds. The approach uses the economic principle that a buyer will pay no more for an asset than the cost to obtain the asset of equal characteristics, and can be referred to as the “cost to replace”. […]
Intangible assets are those that are not stored or accumulated in physical form. Like all assets, intangible ones can be owned, transferred, or licensed, and they have value. An intangible asset can be any intellectual property or brand — trademarks, copyrights, and patents are all classified as such. Intangible assets usually exist in opposition to tangible […]
This post will take a dive into the concept of asset sales, an important concept in the domain of private business sales/transfers and their valuation. In an asset sale, a company sells some or all of its business assets to a buyer, but the company itself (as a legal entity) is not sold. Further, the buyer has the right […]
Key clients are great, right? But are they risky? And how might they be affecting your business’ value? Let’s address the importance of achieving a well-diversified client base to increase your business’ value, and how the reliance on key clients can impact the risk perceived by investors in your business, which can in turn […]