For every business owner involved in estate planning, it’s crucial to find an appropriate business valuation expert that will prepare a highly defensible business valuation report that is submitted to the IRS. Reports that follow state-of-the-art valuation process, completely justified, and supported with all relevant citations become highly defensible, whilst on the other hand those […]
Business valuations are as much art as they are science as it’s open to several interpretations and estimations on potential future outcomes of a company. Business valuation for privately held businesses in particular is more challenging due to the limited information that can be used to determine the fair market value of a business compared […]
Business appraisers as part of valuation standards and accepted practices will often use applicable discounts in valuing privately held businesses. The identified value for equity interests as part of the overall estate are what the IRS use to determine the proper taxation. Meaning all else equal, if discounts are correctly applied to the said equity […]
Business appraisals of privately held businesses often include hefty discounts under fair market value, which can go as high as 70% or more of the 100% equity value due to the lack of marketability and/or liquidity relative to other marketable and liquid assets such as stocks trading in the NYSE. Liquidity and marketability are often […]
As businesses grow and expand, the value of their assets grows along with them. While physical assets such as equipment and property are easy to identify and value, it’s important not to overlook the value of intangible assets as well. In this blog post, we’ll discuss the intangible definition, the importance of valuing intangible assets, […]
Business valuation is a critical component of any company’s strategic planning and decision-making process. One important aspect of valuation is the determination of fair value, which is essential for financial reporting purposes, mergers and acquisitions, and other transactions. (ASC 820) To achieve a consistent and reliable approach to fair value measurement, the Financial Accounting Standards […]
Your business value is important. And that´s exactly why you need to act before it´s too late. One of your most valuable assets is your business, and understanding its value is crucial for making informed decisions about its future—meaning your future. Impacted by the success of your business are your time and emotional investment, fulfillment, […]
Introduction A reasonable cost of capital calculation hinges on accurately assigning a risk-free rate and equity risk premium to the model. While both are less prone to analyst-specific subjective criteria, there is still nuance to each. Both are moving targets, and analysts must weigh variables feeding the components closely to determine the most accurate estimate. […]
Introduction Risk is an unavoidable part of life and is particularly embedded when determining the cost of capital. No investment or valuation is guaranteed, as any prudent advisor or planner will tell you, but quality analysts and investors try to quantify and forecast risk. The core output of the valuation process’ cost of capital is […]
Introduction Calculating the cost of capital is a critical step to come up with an accurate valuation, but many analysts and investors find the process daunting. As much art as science, there are multiple ways to calculate the cost of capital and just as many discrete variables that comprise the calculations themselves. These variables, in […]