In mergers and acquisitions (M&As), financial statements help provide data to support prices. However, it’s important to make sure that those reported results are both reliable and sustainable. After all,
When valuing private businesses, valuation professionals routinely rely on public stock market data. They also adjust their analyses to generate reliable and defensible value conclusions based on key differences between
Most business valuations focus on a company’s value as a going concern, meaning it is expected to keep operating. But when a business is facing financial challenges, liquidation value, or
Valuation professionals are often a major source of assistance and insight for business owners during the merger and acquisition (M&A) process. They help to establish reasonable price expectations, structure transactions,
When valuing a closely held business, owners’ compensation can be a subjective and potentially contentious issue. Take a look at how business valuation professionals adjust for owners’ compensation when evaluating
One of the most significant financial and strategic events in a business owner’s life could be selling their company to a private equity (PE) firm. For many sellers, operational aspects
When valuing a business using the market approach, the premise is generally straightforward: A company’s value can be derived from the prices others pay for similar businesses. However, this technique
Discounted cash flow (DCF) techniques are often used by valuation professionals to determine the value of a business or to estimate economic losses. The cost of capital, or the rate
Analyzing historical financial performance is often the first step in valuing an established business. However, start-ups present a unique challenge as most of them have never generated a positive cash
A powerful tool for consolidating and managing family wealth while reducing gift and estate taxes is family limited partnerships (FLP). These arrangements, however, are closely scrutinized by the IRS. This
