Enterprise Value

This post will take a dive into the enterprise value concept – an important concept in private business valuations. As its name suggests, enterprise value 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 […]


Market Approach

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 simple words, the Market Approach determines the value of a business based on the price of transfer or the value of comparable businesses or even the […]


Cost Approach

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, can be referred to as the ‘cost to replace’. The […]


Intangible Assets

Intangible Assets; Definition Intangible assets are those assets that are not stored or accumulated in physical form. Like all assets, intangible assets can be owned, transferred, or licensed, and have value. An intangible asset can be any intellectual property or brand. Trademarks, copyrights, and patents; are all classified as intangible assets. Intangible assets usually exist […]


Asset Sales

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 […]


Key Client Risk

Key clients are great right? But is it risky? and how is it affecting your business’ value?   Today we want to 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, and thus, […]


Discounted Cash Flow

Discounted cash flow is the foundation on which all other valuation approaches are built. This method is commonly used by practitioners to derive a conclusion of value of an asset as part of the ‘Income Approach’ which is one of the three ways of approaching a business valuation. In this short article, we will explain […]

income approach

Income Approach

The income approach is one the most used methods to estimate the value of a business. Within this approach, there are two main methods, the Discounted Cash Flow Method and Capitalization of Cash Flows Method. In this post, we will take a closer look into how this approach works and what it means. Let’s get […]

Asset Approach

If you are interested in the world of finance and business valuations, you may have heard a few times the term “Asset Approach”. If you are interested in expanding your knowledge regarding this topic, we encourage you to read the following article. Using an Asset Approach to Value a Company It’s understandable if you have […]

valuing goodwill

Valuing Goodwill

Valuing goodwill can be a tricky one, and probably a bit misunderstood. However, it’s one of those important components in the valuation of a business that simply can’t be overlooked. In this blog, we’ll look at some of the essential components of goodwill, so you can get a better understanding of how goodwill works and […]