When communicating the results of a business valuation engagement, a valuation advisor should ensure that the client understands the “Standard of Value” being utilized. The Standard of Value indicates the assumptions that go into the valuation analysis, and the selection of the Standard of Value depends on the nature of the valuation engagement. Ahuja & [...]
If you own a privately held business, you will likely encounter a situation where you need to know how much it is worth. Is your company a target for a strategic or financial acquisition? Are you setting up a succession plan that gifts ownership to family members? Do you need the fair market value for [...]
A&C performs valuation of all levels of business interests, intellectual property, personal property, and complex securities. An independent appraiser considers the three approaches to determine the value of the underlying interest: the income approach, the market approach, and the asset approach. In a perfect world, income approach makes perfect sense. The present value of the [...]
When you have a need for a business valuation, whether it's for your business or a client?s business, you want to ensure you get the proper valuation. But what does that mean, really? There is a large amount of perspective involved. If you are purchasing a business, or supporting a client to do so, you want [...]
What is it? At the end of the day, a valuation exercise is about price discovery. The price of something is a critical fulcrum by which the allocation of scarce resources is determined. Therefore, the determination of price by bottom up (and competing) forces is an essential ingredient for arriving at efficient prices. Central top down [...]
Given the high degree of art and science that goes into a quality valuation it is understandably challenging to objectively compare the pedigree among individuals and or firms. In effect, this is a type of valuation question:What is the value of the analyst"s judgment? Here are a couple of factors that should provide some illumination [...]
Sometimes having a divergent and unique perspective in valuation can be the difference between a firm?s life or death: Anheuser Busch was founded in 1852 and was a well-established business by the early 1900s. Then in 1920, the Eighteenth Amendment to the US Constitution was passed which established the prohibition of alcoholic beverages. At first [...]
Business Valuation is not a commodity service; it is both an art and a science. There are multiple factors that must be considered to ensure the proper crafting of a robust valuation. For anyone seeking a business valuation, selecting an experienced analyst who understands these factors and more importantly how to navigate their implications is […]
The valuation of any company, whether it is an established company, or a start-up new venture, requires forecasts and predictions about the future. Hence, in this regard, business valuation is commonly referred to as a "Prophecy to the Future", in technical literature. A company's value is based on its ability to produce economic benefits, in […]
Among the many roles valuation analysts play in facilitating a company's success, one of the most overlooked may be their support in evaluating strategic investment decisions. Valuation analysts have many tools at their disposal that can help management determine the winning investment strategy. Businesses seeking growth have several options that include, but are not limited […]
