Practical guidance on business valuation, M&A, exit planning, and more.
Terminal value often accounts for 60-80% of total DCF value. Understanding how it’s calculated, and how sensitive it is to assumptions, is essential for interpreting any income-approach appraisal.
Read ArticleRevenue and EBITDA multiples each serve a distinct purpose in valuation. Understanding when to use each, and what the market is actually pricing, is foundational to any market approach analysis.
Read ArticleESOP transactions require an independent, ERISA-compliant valuation, and the stakes for getting it wrong are significant. Here’s what business owners and plan trustees need to know.
Read ArticleBefore any valuation method is applied, the financials must be normalized. Recasting removes owner-specific distortions and produces the earnings figure that truly reflects what the business generates.
Read ArticleSDE is the standard earnings metric for owner-operated businesses. Understanding how it differs from EBITDA, and when each applies, is essential for any small business owner or advisor.
Read ArticleMinority ownership interests in private companies trade at significant discounts to their pro-rata enterprise value. Understanding why, and how those discounts are measured, matters for owners, investors, and estate planners.
Read ArticleWhy a current, defensible valuation is the cornerstone of any buy-sell agreement, and what happens when you don’t have one.
Read ArticleSBA lenders require an independent business valuation on most transactions over $250,000. Here’s what qualifies, and what doesn’t.
Read ArticleWhen a business’s success depends heavily on one or two individuals, appraisers apply a specific discount. Learn how it’s measured and how to reduce it.
Read ArticleOwner compensation, one-time expenses, and above-market rent are just some of the adjustments that transform reported EBITDA into a valuation-ready earnings figure.
Read ArticleThe asset approach is often misunderstood, here’s when it’s the right primary method and when it simply establishes a valuation floor.
Read ArticleTransferring ownership interests to heirs or trusts triggers strict IRS valuation requirements. Here’s what a compliant appraisal must include, and the consequences of getting it wrong.
Read ArticleA practical breakdown of the three most cited earnings metrics in business valuation and what each one really tells you.
Read ArticleHow leveraged buyouts work, why PE firms use them, and what the LBO model tells us about a company’s value.
Read ArticleUnderstanding how capital expenditures and depreciation interact, and why it matters for your business’s value.
Read ArticleA deeper look at how changes in working capital affect cash flows and ultimately the value of a business.
Read ArticleWhy smaller companies carry a higher cost of equity, and how appraisers account for it in the discount rate.
Read ArticleAfter an acquisition closes, a PPA determines how the purchase price is assigned to assets and liabilities, and why it matters.
Read ArticleDiscounts for lack of control and lack of marketability, two critical adjustments in every private company valuation.
Read ArticleWhat goodwill really means in valuation, how it’s measured, and why it’s often the largest component of enterprise value.
Read ArticleWhy the value of a business to one buyer differs from its value to another, and how to think about synergies.
Read ArticleWhen to use a single-period cap rate versus a multi-period discounted cash flow, and what drives the choice.
Read ArticleA step-by-step walkthrough of the weighted average cost of capital and why it’s the engine of the income approach.
Read ArticleA plain-language guide to DCF, how it works, what inputs drive it, and when it’s the right tool for valuation.
Read ArticleThe critical distinction between enterprise value and equity value, and why mixing them up is a costly mistake.
Read ArticleHow comparable transactions and public market multiples are used to establish value, and the limitations of each.
Read ArticleWhy the income approach is often the most reliable method, and how professional appraisers apply it in practice.
Read ArticleHow a current valuation informs financial planning, retirement strategy, and exit readiness for business owners.
Read ArticleWhy a professional, defensible valuation is essential in divorce proceedings involving a business owner.
Read ArticleHow a business valuation fits into your exit strategy, and why starting early gives you more options and better outcomes.
Read ArticleFrom SBA lending and M&A transactions to estate planning and buy-sell agreements, the many contexts where a valuation is required.
Read ArticleThe strategic case for knowing your company’s value, even when you’re not planning to sell.
Read ArticleAn inside look at the ValuEdge methodology, from the inputs we gather to the algorithms that produce your final report.
Read ArticleSchedule a call with a ValuEdge expert and get your report within 24–48 hours.
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