Top 4 benefits of getting a business valuation 1 min read. 1. Provide a clear understanding of your business’s market value. With a business valuation, you can get an accurate and comprehensive idea of your company’s current value and what are the key drivers (both qualitative and quantitative) of this value. This will help provide …
Top 5 considerations when getting your business valued 3 min read. Before engaging a valuation firm to carry out a business valuation, there are several important issues a business owner needs to consider to ensure they’ll receive a value opinion that is most relevant and accurate for their case. 1. Determine the purpose of your …
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What is working capital and why do you need it to negotiate and agree upon a working capital amount to ensure a fair transaction?
Most important factor in a business valuation 1 min read. What is The True Income of the Company? In general terms, in most business valuations the value of a company is derived at by discounting or capitalizing the ‘true’ income or stream of cash flows that a potential buyer of the business will likely receive. …
Sales forecasting in COVID-era 2 min read. Sales and growth strategies are needed now more than ever before. Here’s why. It’s difficult to consider building a sales forecast when the economy is down, and many businesses are struggling to keep their heads above water. But the fact of the matter is, the more planning you …
Earn-outs in M&A transactions 2 min read. What is an earn-out? An earn-out is a contingent portion of the purchase price of an acquisition determined post-closing based on the target company’s performance against certain contractually defined criteria or benchmarks. Typically, payments to the seller would be structured so that part of the purchase price will …
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Why do definitions of value matter? 1 min read. In business valuations, there can be confusion regarding the standards of value (or definitions of value) for clients or non-valuation professionals. Different standards of value result in different values for a business. So which standard of value to use? It depends on the purpose of the valuation …
You may be required to have a 409A valuation – here’s why 1 min read. Any private company (including non-U.S. companies) that issues equity-based compensation to U.S. employees (and advisors) would need to comply with Section 409A of the U.S. Internal Revenue Code, which essentially requires, among other things, that stock options and other equity …
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Don’t make this mistake with cash on hand when arriving at your business value 1 min read. A business valuation typically involves determining the future cashflows that a company will generate and applying an appropriate multiple on the cashflows to arrive at the value of operations. The most common error I’ve seen in business valuations …
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Valuing a business during the COVID-19 pandemic 2.5 min read. For the majority of businesses, COVID-19 has changed the ways they operate profoundly and in some cases, these changes are permanent. As a result, this changes the way business appraisers value these companies. Valuation date The decision upon which valuation date should be adopted becomes …