key-client-risk

Key Client Risk

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 […]

discounted-cash-flow

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. What is the Income Approach?   […]

Asset Approach

If you’re interested in the world of finance and business valuations, you may have periodically heard the term “asset approach”. The following article breaks down what it means and will expand your knowledge on this interesting topic. Using an Asset Approach to Value a Company  It’s understandable if you have no idea how much your […]

valuing goodwill

Valuing Goodwill

Valuing goodwill can be a tricky one, and it’s likely 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 article, we’ll look at some of the essential components of goodwill so that you can get a better understanding of how goodwill […]

How to value equity

Valuing Equity

This post will take a small dive into some common ways to calculate the equity value of a company, focusing on private businesses. Valuing Equity Definition  In short, valuing equity is the ownership interest in a business after subtracting the financial obligations (e.g., debt)/debtholder ownership). Company Value – Debtholder Ownership = Equity Value Valuation professionals […]

business value drivers

Business Value Drivers

Technology  Technology is an important tool that can improve a company’s performance and competitiveness. Some companies lack the resources to update technology, and therefore find it difficult to keep up with the technological changes in their markets. On the other hand, some companies manage to keep pace and are aware of changes to their market, […]

business calculator

Business Calculator

It sure is fast, but how reliable is a business calculator? There are certainly pros and cons to using a business calculation software, with some situations more viable than others. If you’re contemplating using a business calculator, we encourage you to read this article to answer some of the questions you may be (and should […]