Private Company Valuations vs Publicly Traded Companies Calculate enterprise value in a private company Valuing a private company is essential for investment, sales, or capital-raising decisions. However, the lack of market prices like those of publicly traded companies makes it more complex than valuing public firms. This article explains key methods, including how to value […]
Business Valuation Blog
Maximizing Earnout Potential: Best Practices for Buyers and Sellers
Bridging Earnout Valuation Gaps Earnouts are used in mergers and acquisitions, where a portion of the purchase price is based on the future performance of the acquired business. This mechanism helps reconcile differing earnout valuations between buyers and sellers by tying payments to actual outcomes. Earnouts are essential in making sure both parties share risks […]
Personal Goodwill vs Business Goodwill Valuation
Personal vs Business Goodwill: What You Need to Know When Selling a Business A Personal Goodwill Valuation Guide when business owner selling a business Valuing Business Goodwill versus Personal Goodwill When business owners are selling a business, every aspect of the business must be considered. A business is much more than just numbers on paper, […]
Here are the Top 7 Benefits of Getting a Business Valuation
Why have a Profession Business Appraisal or Company Valuation? Know the Economic Value of Your Business- Your Largest Asset A business appraisal determines the current value of a business based on its team, assets, intellectual properties, earnings, growth, and losses, usually during a financing event. Regardless, every small business owner should consider conducting a business […]
Achieving Higher Valuation Multiples with Recurring Revenue Models
Creating Recurring Revenue Increases Your Company’s Value Are you wondering how to achieve higher valuation multiples with recurring revenue? Recurring revenue models provide consistent income and enhance investor confidence. They also make financial forecasting easier and boost customer loyalty. This article explores how these benefits translate into higher valuations and what metrics to focus on. […]
Allocation of Purchase Price Services
What is a Purchase Price Allocation? Allocating the purchase price in a business acquisition can be complex. This article walks you through an example of an allocation of purchase price. You’ll see how to distribute the total cost among acquired assets and liabilities, helping ensure accurate financial reporting. Key Takeaways What is a Purchase Price […]
Essential Taxes When Selling a Business: What You Need to Know
Know the Tax Implications Before You Sell Your Company Understanding the tax implications when selling a business is crucial. Taxes can significantly impact your profit and financial outcome. This article will guide you through the critical tax considerations, from capital gains to depreciation recapture, and help you plan effectively for a smooth transition. Key Takeaways […]
Navigating Tax Considerations When Selling a Business
Tax Implications of Selling a Business Understanding the key tax considerations is crucial to maximizing your profit when selling a business. This guide will outline the major tax implications you need to be aware of, such as capital gains taxes, options for structuring the sale, and strategies to help reduce your overall tax liability. These […]
What is Value in a Business Valuation?
The Principals of a Business Valuation Selecting and Working with a Business Valuation Consultant How Do You Value a Business? A Method to Calculate Business Valuations: Value Starts with Expected Cash Flow In business valuation, value is determined by projecting the future cash flow of a business or investment. This projection can be based on […]
The Real Impact: How Inflation Destroys Business Value
Inflation and Its Impact on Business Valuation Discover in this article how inflation can profoundly diminish the worth of a business by escalating costs, unsettling cash flows, and decreasing the purchasing power of consumers. Explore methods to counteract the detrimental effects that rising prices, increased wage demands, and pricier financing options pose to businesses as […]
Factors Impacting Your Company’s Value
What Determines Your Business’s Value? What four factors impact your business valuation? For many business owners, an appraisal of the company is sought when a potential sale or exit of the business approaches. For others, a business valuation is obtained to settle partnership disputes, divorce proceedings, property distributions, or tax purposes. A business appraisal, or […]
What you need to know about small business valuations
How to Value a Small Business Prepare your business for a business appraisal What is Small Business Value? Small Business Valuation Steps Operating a small business can be extremely rewarding. For some individuals, doing so represents the opportunity to create an enterprise with growth potential. For others, it reflects the chance to build a valuable […]