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Posts Categorized: Business Valuation

Three More Common Mistakes Made When Valuing a Business – Part Two of Two

Our study of the most significant mistakes made while setting a business valuation concludes as a well-respected Philadelphia forensic accountant and Certified Valuation Analyst takes a closer look at three additional issues that often are encountered in this process. Relying on outdated business transactions and industry growth rates: According to David Anderson, principal of David… Read more »

What is a Song Worth?

When valuing a business – or part of a business, a financial professional must take into account such intangible assets as patents, trademarks, trade names, goodwill, literary works, and even songs, according to a leading Philadelphia forensic accountant and Certified Valuation Analyst. “Although the phrase ‘I got it for a song,’ meaning for practically no… Read more »

Tricks of the Trade – Looking at the Numbers

As part of the normal procedure of analyzing financial and accounting information, a forensic accountant will look closely at the numbers themselves. Such tight scrutiny can help unearth potential fraud or other abuse of financial information, according to David Anderson, a Philadelphia forensic accountant and principal of David Anderson & Associates, a Philadelphia forensic accounting… Read more »

Forensic Accountants Tackle Complexities of Economic Damages Calculation

When a business suffers financial or economic damages as the result of the actions of another or due to a catastrophic event, business owners, attorneys and the courts rely on forensic accountants to calculate damages and determine the amount of financial or economic recovery necessary to restore the business to the position it would have… Read more »

Adjusting Executive Compensation in Business Valuations

Establishing the fair value of a business requires a business valuation expert to adjust the revenues and expenses of the business to reflect “normal” operations.  Non-recurring and unusual expenses and revenues are eliminated, and recurring expenses and revenues are adjusted to reflect amounts that would be incurred if the owners were “hypothetical” independent investors in… Read more »

Business Valuation: How an Unprofitable Business Can Have Value

Uncovering value in an unprofitable business might seem to make as much sense as wringing water out of a rock, but – by putting forensic accounting principles to work – a knowledgeable business valuation expert can do just that. “Business valuators look to three primary methods for valuing a business – the Income Method, the… Read more »

Valuation Issues in Divorce Best Left to Forensic Accounting Experts

Determining the equitable value of a business that is at the center of a divorce case can be a tricky situation, particularly when spouses have differing opinions about what that value should be.  No doubt that is why most attorneys turn to a forensic accounting expert who has served as a marital dissolution accountant and… Read more »

Rely on Forensic Accounting Experts to Untangle Valuation Issues in Divorce

The decision to end a marriage is a messy affair that becomes undoubtedly more complicated when the division of property includes a business that must be valued.  In these cases, determining a fair value for the business is best left in the hands of a forensic accounting expert who has experience serving as a marital… Read more »

Forensic Accounting Experts Tackle Valuation Issues in Divorce

Marriage dissolution is never easy.  Throw in the complexity of one spouse owning a business that must be equitably valued and the complications multiply.  Fortunately, forensic accounting experts who also have served as marital dissolution accountants and business valuation experts can help unravel the complexities and help the parties reach a fair valuation of the… Read more »

Forensic Accounting Experts Unravel Complex Valuation Issues in Divorce

Ending a marriage equitably can be a complex process when spouses and their attorneys face the daunting prospect of determining the value of a business.  In these cases, it is always a good idea to consult a forensic accounting expert who also has served as a marital dissolution accountant and a business valuation expert to… Read more »

Business Valuation: Why Shares in Private Companies Are Discounted

You own 25 percent of a privately held business valued at $2 million, so it stands to reason that your investment is worth $500,000, right?  Not necessarily.  When valuing an ownership interest in a privately held company, business valuation experts must consider factors that can significantly reduce the value of your stake in the business…. Read more »

Understanding Business Valuation, Part V

The process of determining the worth of a business is a complicated one.  A business valuation expert must undertake a series of preliminary steps to set the groundwork and then consider the value of the business from three very distinct approaches before forming a professional opinion as to the initial value.  With this process completed,… Read more »