Valuation professionals use various methods to determine the fair market value of a private business or business interest. The excess earnings method is one of the more debated techniques. Here
Determining the value of a construction company is complex and requires a deep understanding of industry-specific challenges and financial metrics. An accurate valuation is essential, whether a construction business owner
Often, business valuation professionals rely on client-prepared financial projections to calculate lost profits and diminution in value. However, courts may exclude expert testimony that’s based on speculative or unreliable projections.
To its owner, a business interest’s value is more than just a number. It represents years of hard work, sacrifice, and investment. Owners often believe they have a clear understanding
The multi-attribute utility model (MUM) provides a systematic technique for making complex decisions. Breaking down goodwill in divorce cases is one innovative way business valuation experts may use this framework.
To determine how much a business is worth, a valuation professional first must develop a comprehensive understanding of how it runs. Financial statements and tax returns tell only part of
In 2025, global merger and acquisition (M&A) volume is expected to surpass $4 trillion, the highest in four years, according to Reuters. Reasons for the anticipated surge include recent interest
Before contacting a business valuation professional, ask yourself the following five questions to help streamline the valuation process and avoid unnecessary confusion down the road: 1. Who’s Hiring The Valuator?
When applying the discounted cash flow (DCF) method to value a private business interest, business valuation experts often rely on prospective financial statements. However, when management prepares financial projections for
There are three commonly accepted techniques for valuing a closely held business: the cost (or asset-based) approach, the market approach, and the income approach. Valuation professionals typically consider all three
