You read in the paper that a local business just sold for $15 million. You feel your company is about one-third the size of that operation. Does that mean you have a $5 million business? A friend said she heard you can determine the worth of a business by multiplying its income by six and… Read more »
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Posts Tagged: Certified Valuation Analyst
How Personal Goodwill Affects Business Valuations
When determining the value of professional services businesses – such as law firms, medical practices or accounting, engineering or consulting operations – it is important, according to a noted Philadelphia forensic accountant and Certified Valuation Analyst, to consider the personal goodwill associated with the professional or business owner. David Anderson, principal of David Anderson &… Read more »
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 Relying on outdated business transactions and industry growth rates: According to David Anderson, principal of David… Read more »
Five Frequently Made Mistakes in Valuing a Business – Part One of Two
While most business valuations properly follow applicable professional standards, some have fallen short when the financial professional makes one or more significant mistakes. Here, from a noted Philadelphia forensic accountant and Certified Valuation Analyst, are two of the five most frequently made business valuations miscues. The three other top mistakes will be detailed in our… 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 »
Business Valuation the First Step in Selling A Business
Selling a business is not dissimilar from selling a house. There are a number of steps a business owner must take to prepare the business for sale and it starts with relying on a business valuation expert to determine what your business is worth. “The parallels in selling a house and selling a business are… 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 »
