When navigating adversarial situations — such as divorces, contract breaches, and shareholder disputes — you might consider hiring an outside business valuator to evaluate complex financial matters. To get the
Valuing a business requires more effort than just plugging numbers from the financial statements into a spreadsheet or artificial intelligence software programs. Financial statements, tax returns, and marketing materials tell
For entrepreneurs who have invested blood, sweat, and tears in their businesses — or second-generation owners who are selling their parents’ legacies —a merger or acquisition can be stressful. Setting
Reviewing your business’ financial statements is generally a good starting point for valuating your business. Here’s an overview of how historical financial statements can serve as the basis for a
Comparing a company’s financials to those of industry peers and its own historical performance, or benchmarking, can provide insight into future cash flows and operating risks. The following types of
You might have heard of fair market value and fair value before, but do you know the difference? Fair market value is considered the appropriate standard of value in most
You might have heard of Revenue Ruling 59-60 before but not know much about it. This landmark piece of IRS guidance t outlines factors to consider when estimating the fair
Many new startups haven’t yet generated positive cash flow, or even revenue. So, how could it be possible for a valuation analyst to value a startup business without a track
When valuing a private business, there are two techniques that fall under the income approach umbrella. They are the discounted cash flow (DCF) method and the capitalization of earnings method.
In a valuation, historical financial results are only relevant to the extent that the business expects to achieve similar results in the coming years. That’s why, when projecting future economic
