Many business owners (and others) are surprised to discover that a business can have more than one value! Value is defined differently in different legal contexts. It is not uncommon for the value of a business under one definition of value to be considerably more than it is [Read more…]
What Is Business Goodwill?
02/01/2016 Posted By
The notion of goodwill has existed since mankind first entered into commercial activity. In ancient Egyptian bazaars, merchants knew the location closest to the city gates would provide
the best opportunity to sell goods. [Read more…]
Is There a Difference between Capitalization and Discounting of Benefits?
01/25/2016 Posted By
Capitalization and discounting of benefits are two methods of valuation related in that they are both parts on the income approach to valuation. However, one is more appropriate than the other under certain circumstances. [Read more…]
Should the Tax on Appreciated Property in the Corporation Be Considered in a Valuation?
01/18/2016 Posted By
Historically the IRS refused to allow any adjustment for “trapped-in taxes” on appreciated property in a closely held corporation. This position has changed based on recent court decisions. [Read more…]
Watch for “Double-Dipping” In Divorce Cases
01/11/2016 Posted By
Double-dipping is a phenomenon that happens in many divorce types of valuations. This typically happens when in the valuation, “normalizing adjustments” are made for salaries that have been drawn out of the company in order to reduce the profits for tax purposes. [Read more…]
What Are the Various Uses for Valuation?
01/04/2016 Posted By
Business valuations are critical for businesses of any size–and not just when a business is being bought or sold. Some common uses of valuations include: [Read more…]
Should Subsequent Events Be Considered in the Valuation?
12/28/2015 Posted By
Valuations are typically to be prepared based upon those facts that were known, knowable and foreseeable as of the date of valuation. However, there are numerous court cases that have considered subsequent or unforeseeable events. [Read more…]
How and Why to Get a Regular Business Valuation
12/21/2015 Posted By
Making it a point to get a regular, objective, and comprehensive valuation for your business is one of the most overlooked tasks of owning a business. Many business owners assume that they only need a valuation if they are planning on selling or retiring in the near future. But the reality is that the time for a business valuation is long before you actually need it, and knowing exactly what your business and assets are worth on a regular basis is one of the most helpful and important things you can do for your financial future. [Read more…]
Does Standard of Value Matter?
12/14/2015 Posted By
The standard of value sets the perspective of the buyer, of the seller, of the marketplace, and the specific property being valued. Without the proper understanding and application of the standard of value, the valuation [Read more…]
What Is Valuation Enhancement And Why Do My Clients Need It?
12/07/2015 Posted By
The stock market bubble burst sent many retirees to work at places such as Wal-Mart and Sam’s Club. Their investments all relied upon investments that were controlled by others. But think about this: Your business clients have an opportunity to have control of their own financial futures-if they know what to do and how to do it. [Read more…]