You can use business valuation for various transactions, including mergers and acquisitions, investment decisions, and even internal assessments of the company’s value. Among the methods employed in business valuation, revenue multiples have gained popularity for their simplicity and accessibility. However, while revenue multiples can offer you quick insights, relying solely on them can lead to… The post Revenue Multiples Can Mislead appeared first on ValuAdder Business Valuation Blog ..read more

Creating an earnings forecast can be challenging when the current year is not yet completed, and only partial data is available. In this blog post, we will explore two methods of creating an earnings forecast with a partially completed year: using only historical data, and using proration. Method 1: Using Only Historical Data One way… The post Creating an earnings forecast with a partially completed year appeared first on ValuAdder Business Valuation Blog ..read more

In business, meetings of decision makers are often seen as valuable networking opportunities and sources of valuable insights. However, not all gatherings are created equal, and the Davos meeting of elites is a prime example. Perhaps larger corporations may find such events useful. But gatherings of this kind often prove to be irrelevant for small… The post When the Davos elites meet should small business care? appeared first on ValuAdder Business Valuation Blog ..read more

Companies in different industry sectors often bear little resemblance to each other. Consider a professional advisory firm and a sporting equipment retailer. So does business valuation by industry follow different rules? The short answer is no. Business valuation methods remain the same regardless of the industry your company operates in. You need to estimate the… The post Does business valuation differ by industry? appeared first on ValuAdder Business Valuation Blog ..read more

Business valuation is the process of estimating the economic worth of a company. Business people get valuations for a number of reasons, such as mergers and acquisitions, taxation, litigation, and strategic planning. While business valuation relies on a lot of math for analysis, is not an exact science. In fact, it is an area of… The post Choose business appraisers over AI bots appeared first on ValuAdder Business Valuation Blog ..read more

Just about any valuation project is likely to involve the discounted cash flow method. The company value is estimated based on its expected future cash flows and risk. You can use the discounted cash flow analysis to value not just businesses but other income producing assets such as stocks, real estate, projects and much more.… The post Discounted cash flow method – pros and cons appeared first on ValuAdder Business Valuation Blog ..read more

Businesses recognize the value of contracts if they offer advantages in terms of lower operating expenses, competitive position, or critical asset retention for some period of time. Consider the important types often seen in successful companies: Leases of business premises. Supplier and other vendor agreements. Employment contracts with key staff members. Licensing rights. Franchise agreements.… The post Business value of contracts appeared first on ValuAdder Business Valuation Blog ..read more

When business appraisals come under the scrutiny of courts, lawyers on both sides reach out to appraisers to testify as expert witnesses. Who gets selected? Usually, attorneys tend to pick the professionals who offered such expert opinions in court before. But how does an appraiser get selected for the first time? Clearly, an attorney decides… The post Expert witnesses appeared first on ValuAdder Business Valuation Blog ..read more

Why would you want to do business valuations in the past? Indeed, most business valuations are done as of the current date. The idea is to figure out what a company is worth right now. Yet once in a while, you may need to establish what the business was worth at some point in time… The post Doing valuations in the past appeared first on ValuAdder Business Valuation Blog ..read more

Why do conflicts in business valuation arise? When business owners don’t see eye to eye they may be tempted to part company and go their separate ways. Naturally, they would want to be compensated for their share of the business. And this creates the need for a business to be appraised. If the dispute is… The post Conflicts in business valuation appeared first on ValuAdder Business Valuation Blog ..read more