The Market Approach: A Touchstone in Valuation
The market approach, whereby appraisers use comparable “guideline companies” to help them estimate the value of a private business, has become…
Demystifying the Discount for Lack of Marketability
Many stocks — such as Walmart, Dell and Google — trade on the New York Stock Exchange (NYSE) or another public…
Price or Value: Which Is Correct?
When a business is sold, it often sells for more (or less) than the appraised value. This may come as a…
Myths and Truths about Business Valuation
The business valuation profession has grown rapidly since 1980. Over the decades, it has developed from a rudimentary process into…
Covenants Not to Compete and Personal Goodwill
A covenant not to compete on the part of the seller is similar to title insurance to the buyer of…
To Discount or Not to Discount (That is the Question)
Value is relative. Some assignments call for an appraisal of the entire entity on a controlling basis. Others require the…
Two Levels of Appraisal Services: Calculations vs. Valuations
Did you know that business valuators offer two types of appraisal services? Formal valuations are the most common service valuators…
Driving the Value of a Business
In today’s environment, it’s important for business owners to focus on the value of their company and what drives it. The…
How Synergy Affects Price
You’ve heard the saying, “the whole is greater than the sum of its parts.” In business, that’s what happens when companies combine and end up worth more than they were worth separately. It’s because of something specific that’s brought to the table, like the ability to significantly reduce production costs. Before putting a business on the market, investigate the value it can add to a potential buyer.
When Goodwill Takes Center Stage
Goodwill is a key issue when valuing a business for certain purposes. Changes to the tax code and accounting rules have forced valuators to take a closer look at goodwill and other intangible assets. Keep reading to learn more about how goodwill has gained some muscle as a key player in business valuation.