Blog

Posts Tagged: 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 »