Category Business Valuation

Business Valuation

Business Valuation: Do the Financials Tell the Whole Story?

Many experts say no! These experts believe that only half of the business valuation should be based on the financials (the number-crunching), with the other half of the business valuation based on non-financial information (the subjective factors). What subjective factors…

March 2, 2012

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Discounted Cash Flow Analysis

Discounted Cash Flow Analysis is a widely accepted valuation method used to estimate the value of an investment based on its future (projected) cash flows.

Detailed Financial Projections

Based on the historic financial performance, the financial, market and economic analysis, the industry analysis, and input from management, Detailed Financial Projections are prepared.

Industry Analysis

Industry Analysis – A review of the industry specific to the assignment is performed as of the date of the valuation and considered during the valuation process in accordance with IRS Revenue Ruling 59-60.

Financial, Market and Economic Analysis

Financial, Market and Economic Analysis – A review of the financial, market and economic conditions is performed as of the date of the valuation and considered during the valuation process in accordance with IRS Revenue Ruling 59-60.

Explanation of Value Conclusion

A detailed Explanation of Value Conclusion is included in the report.

Fair Market Value Calculation

Fair Market Value is defined in Revenue Ruling 59-60 as “the price at which the property would change hands between a willing buyer and a willing seller when the former is not under any compulsion to buy and the latter is not under any compulsion to sell, both parties having reasonable knowledge of relevant facts.”

Certified Report

Certified Report indicates that the valuation has been performed and its report has been prepared in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) by an accredited appraiser.

Accredited Appraiser

An Accredited Appraiser holds a professional designation from an accepted organization. Sarah Breitreiter holds a Business Certified Appraiser (BCA) designation from the International Society of Business Appraisers (ISBA).

Methods

A valuation Method is a specific way to determine value.