Can Marketability Discounts Apply When Valuing Controlling Business Interests?
Discounts for lack of marketability are well established when valuing minority interests in closely held businesses. But many valuation experts believe that controlling business interests also warrant a marketability discount to reflect the uncertainty and Read More
Oct 29, 2024
How Financial Statements Are Used to Value a Business
Financial statements are an important piece of the business valuation puzzle. Appraisal professionals typically consider three approaches when valuing a business — the cost, market and income approaches — ultimately relying on one or two Read More
Sep 12, 2024
A Business Valuator Is a Must-Have When Filing a Business Interruption Claim
Meteorologists warn that the 2024 hurricane season could break records, possibly surpassing 2020, the worst hurricane season on record. Even if hurricanes aren't a threat where your business operates, other natural disasters — such as Read More
Aug 01, 2024
Business Owners: Understanding Value Is Key to Updating Your Estate Plan
Summer is a great time for business owners to review their estate plans. Maybe your kids are home for summer break, so they're top of mind. Or perhaps you're vacationing with relatives or getting together Read More
Jul 07, 2024
What’s the Difference Between a Calculation of Value and a Conclusion of Value?
Most business valuation assignments call for a conclusion of value. However, there may be times when a calculation of value can be a quicker, more cost-effective solution. Value Conclusions When providing conclusions of value, Read More
May 14, 2024
Installment Sales Can Be a Win-Win for Buyers and Sellers
For federal income tax purposes, an installment sale is when at least one payment of proceeds from an eligible sale is deferred until after the end of the tax year in which the sale occurs. Read More
Mar 25, 2024
How Accounting Expertise Can Add Value to a Business
Accounting has traditionally been focused on historical data and compliance for regulatory and lending purposes. However, it's now at the center of strategic decisions and value creation. Here are ways that accounting professionals can help Read More
Mar 08, 2024
Factoring Industry Risk into the Business Valuation Equation
There's generally a trade-off between risk and return in business valuation. Investors expect to receive a higher return as a company exposes them to greater risk. Industry-specific risk is an important consideration when estimating an Read More
Feb 09, 2024
How Business Valuation Professionals Estimate Reasonable Compensation
Reasonable compensation is an issue that comes into play in divorce, shareholder disputes and tax cases. It's also a common financial statement adjustment that valuators make when valuing a business. Although experts are often hired Read More
Sep 06, 2023
Valuing Professional Practices
There are many types of professional practices. Examples include medical, architecture, engineering, accounting, advertising, design and law. From a business valuation perspective, it's important to recognize the common denominators these businesses share. Reliance on Read More
Aug 14, 2023