An experienced business valuation professional considers more than just a company’s financial statements when quantifying its value. The professional conducts detailed interviews and asks for a variety of documents when
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
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
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
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
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
Valuation experts often use discounted cash flow (DCF) techniques to determine the value of a business or estimate economic losses. A critical input in a DCF model is the cost
In a business valuation context, the term “marketability” refers to the ability to quickly convert property to cash at minimal cost. While publicly traded stocks are readily marketable, interests in
Most U.S. businesses operate as so-called “pass-through” entities, including partnerships, limited liability companies, and S corporations. For decades, the IRS and valuation professionals have been at odds over how to
The COVID-19 pandemic has put unprecedented stress on private business owners. Some are now considering selling their businesses. Before putting your business on the market, it’s important to prepare it
