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, […]
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’re a business owner, accountant, investor, or, simply taking an interest in business valuations, and have ever wondered Why do I Need a Business Valuation? Then this is the article for you, as we explain it from a couple of different angles. A major mental block to the (necessary) process of accurate and recurring […]
In order to understand What a Business Valuation Costs, we need to understand the fundamentals of a Business Valuation. What the service entails and what value does it provide, from there you can identify a cost for that valuable service. Business Valuation is the process of finding an objective measure of the business’ sale price […]
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 […]