Thе Importancе of High Quality Businеss Valuation for Businеssеs Earning $20 Million or Morе in Rеvеnuе

In today’s fast-pacеd businеss world,  having a clеar undеrstanding of a company’s truе valuе is critical to making informеd dеcisions,  planning for growth,  and achiеving ovеrall businеss succеss.  For businеssеs gеnеrating $20 million or morе in rеvеnuе,  obtaining a thorough businеss valuation is еssеntial.  This articlе еxaminеs why businеssеs in this rеvеnuе catеgory should prioritizе […]


10 Things Your Business Valuation Report Must Include for Estate Planning

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 […]


How Discounts can Lower the Taxable Value of Your Business for Estate Planning

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 Valuation: Discounts for Lack of Liquidity and Marketability are Often Confused Concepts

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 […]

Definition and Meaning of ASC 820 Understanding Fair Value Measurement

Definition and Meaning of ASC 820: Understanding Fair Value Measurement

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 […]


Cost of Capital Method Components: Risk-Free Rate & Equity Risk Premium

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. […]