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Category: Valuation

Three Approaches To Valuing A Business

Valuing a private business is a complex endeavor. But, when all is said and done, valuation analyses boil down to three general approaches. 1. Market approachUnder this approach, valuators derive

Valuing Noncompetes In Business Combinations

Purchase price allocations are an important part of negotiating a successful mergers and acquisitions (M&A) transaction. The value of most assets — such as receivables, inventory, and equipment — may

Rx For Valuing A Distressed Business

Over the last two years, market conditions — from cost increases and forced shutdowns to shortages of labor and supplies — have taken their toll on many businesses. While owners

How To Value A Business For Divorce

When divorcing spouses own a private business interest, it complicates the settlement process. The value of a business isn’t necessarily as straightforward as the values of other marital assets. And

Don’t Discount The Key Person Discount

In the fourth quarter of 2021, chief executive officer (CEO) resignations were up 16% over the prior year, according to executive outplacement firm Challenger, Gray & Christmas. Recent and announced

Close-Up On The Cost Approach

The cost (or asset-based) approach to valuing a business focuses on the balance sheet. This financial statement reports ‘book values’ for the company’s assets and liabilities. Here’s how the cost

When Subsequent Events Count

The value of a business interest is valid as of a specific date. The effective date is a critical cutoff point because events that occur after that date generally are