When valuing a business using the discounted cash flow method, residual (or terminal) value can be a major part of the valuation puzzle. Business valuation experts typically consider the capitalization of earnings method and the market approach when estimating residual value. Either (or both) may be appropriate, depending on the nature of the business, purpose
Valuation Archives - Crawford Ellenbogen
Jun 29, 2022
Measuring residual value for the discounted cash flow method
- By Joan Ellenbogen
- Valuation
- 0 Comments
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Feb 8, 2022
Close-up on the cost approach
- By Joan Ellenbogen
- Valuation
- 0 Comments
The cost approach to valuing a business starts with the book values of assets and liabilities reported on the balance sheet. However, book value is based on historic cost, rather than current market value. Plus, certain items, such as internally generated intangible assets and contingent liabilities, may not be reported on the balance sheet. So
Dec 8, 2021
6 steps to prepare your business for a sale
- By Joan Ellenbogen
- Valuation
- 0 Comments
The COVID-19 pandemic has put unprecedented stress on private business owners. Some are now considering selling their businesses. Before putting your business on the market, it’s important to prepare it for sale. Here are six steps to consider. 1. Clean up the financials Buyers are most interested in an acquisition target’s core competencies, and they
Nov 24, 2021
Opportunities and challenges: Valuation in the age of COVID-19
- By Joan Ellenbogen
- Estate, Valuation
- 0 Comments
The tax implications of various estate planning strategies depend on the value of your assets at the time they’re transferred. The COVID-19 pandemic has had a significant impact on the value of many asset types, which may create attractive estate planning opportunities. It also presents unique challenges for valuation professionals. Generally, valuators consider all three