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Posts Categorized: Business Valuation

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 »

Understanding Business Valuation, Part IV

Business valuation experts must undertake a series of preliminary steps to set the groundwork for determining the worth of a business.  Once those steps are complete, valuators must consider three very distinct approaches to valuing a business. In earlier postings, David Anderson, principal of David Anderson & Associates, a Philadelphia forensic accounting firm that provides… Read more »

Understanding Business Valuation, Part III

Determining the worth of your business can be a complex matter.  Before the actual business valuation can truly get underway, there are a multitude of steps that must be taken to set the groundwork. In previous postings, David Anderson, principal of David Anderson & Associates, a Philadelphia forensic accounting firm that provides a full range… Read more »

Understanding Business Valuation, Part II

Understanding how to achieve a fair and accurate business valuation is something every business owner — at some point — needs to know. “You don’t want to rely on estimates, gut instinct or rumored calculation methods to determine business value,” said David Anderson, principal of David Anderson & Associates, a Philadelphia forensic accounting firm that… Read more »

Understanding Business Valuation, Part I

Do you know the value of your business?  There are myriad reasons why you might need to know — from mergers and acquisitions to estate issues or marital dissolution.  When the time comes, understanding how a fair and accurate business valuation is determined is of paramount importance. “The first step in valuing a business is… Read more »

Valuation Issues to Consider During Healthcare Acquisition Negotiations

In response to the Affordable Care Act, more hospitals and large physician groups are buying physician practices to control referral sources, service quality and operating costs. This increase in practice acquisitions is expected to continue for the foreseeable future. Because of this, it is more important than ever for both acquirers and acquirees to consider… Read more »