Resources

Valuation

Valuation
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Calculating Cash Flow for a Business

In general, a small to mid-sized business is defined as a business that is privately owned and usually has up to 500 employees, depending on its industry. Calculating the cash flow of these small to mid-sized businesses can be tricky because one will need to account for a number of different factors.

Valuation
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How Owner Involvement Affects the Value of a Business

When determining the fair market value, lots of different factors are considered, such as annual revenue, risk, assets, and liabilities.

Valuation
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How Recurring Revenue Affects Business Value

Recurring revenue is the portion of a company’s revenue that will continue into the future. It is important to note that these are not the revenues that are just expected to continue, but the revenues that can be counted on to occur in the future.

Valuation
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The Basics of Valuing a Business

Valuing a business can be difficult and complicated. It requires following a complex set of rules, knowledge of valuation techniques, factors driving value in the industry, laws and accounting standards, and a good understanding of the subject company. 

Valuation
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Valuing a Business is Forward Looking

Using Historical Financials to Shed Light on Future Projections

Valuation
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What Types of Risk Affect the Value of a Business

Company Specific Risk (CSR) is a specific risk rate that is applied to any one company and can greatly affect its value.

Valuation
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Why Knowing the Value of your Business is Important

Do you know what your business is worth?

Valuation
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The Pitfalls of Price to Revenue Multiples

The price to revenue multiple (also referred to as the revenue multiple or sales multiple) is often used by small business professionals to estimate the value of a business.

Valuation
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Depreciation Downfall

Depreciation is not a precise measurement of “reduction in value” from original cost. It is an estimate of the decrease in the useful life of an asset, and the ‘useful life’ is an arbitrary measurement, consistently applied for accounting purposes.

Valuation
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Risky Business: Relying on Valuation Rules of Thumb

Rules of thumb can be useful to determine if a proposed business transaction seems reasonable prior to accepting an offer or application.