One of the most important procedures done in preparing a business valuation is the ratio analysis of the subject company’s financial statements. The calculation and review of financial ratios will assist the valuation analyst in determining the strengths and weaknesses of the company.
Category Archives: Business Valuations
The Importance of Selecting the Right Forensic Accountant
One of the most important decisions an attorney involved in a complex litigation will have to make is the selection of a forensic accountant as a consultant or as an expert witness. The specialized training and expertise of a forensic accountant can make a significant impact in the successful outcome of a case.
The Importance of Industry Research in Valuing a Business
Many times the industry outlook section of a business valuation report is not given the appropriate attention it deserves. Conducting a detailed industry analysis will provide the valuation analyst with the required knowledge needed to determine an appropriate conclusion of value.
Does the Purpose of the Valuation Impact the Valuation?
The purpose of a valuation will ultimately dictate, the standard of value to be used, the audience the valuation will be used by, the type of report or means of communicating the result, as well as in some cases
What Is the Difference in All the Various Valuator Credentials?
Okay, you’ve seen the professional designations such as CPA, CVA, AVA, ABV, ASA, CBA, CFFA and so on. But WHAT ARE ALL OF THESE DESIGNATIONS? Isn’t just a regular CPA all one needs in a matter of valuation or forensic accounting?
What Is Property?
The definition of property is pivotal in any valuation. The valuation is essentially an economic quantification of the bundle of rights that are either held or transferred in connection with the valuation project.
Where Is the Excess Earnings Method Most Relevant?
The excess earnings method of valuation is the result of Appeals Revenue Memorandum 34, issued by the Internal Revenue Service. Its intended result was to separate the value of the tangible assets from the value of the intangible assets.
Baby Boomer Business Owners Need Valuation Help, Now More than Ever!
The baby boomer age bracket was a generation of entrepreneurs. More businesses were founded and grown by this group born from 1946-1964 than ever before. It has been estimated that between now and 2025 almost $10-trillion dollars will change hands as baby boomers pass their businesses on to the next generation. Here are some additional statisticsContinue reading “Baby Boomer Business Owners Need Valuation Help, Now More than Ever!”
Can Anyone Do Valuations?
Certainly anyone has the capability to prepare a valuation. The bigger question is “Are they qualified to prepare the valuation?” It is important that you or your clients evaluate the potential expert in light of their education, experience, background, and credentials in the valuation arena.
What Are the Key Issues of Family Limited Partnerships?
When utilized correctly, Family Limited Partnerships can be very powerful estate planning andasset protection planning tools. However there are a number of defects that can occur. Thefollowing is a list of common defects in FLP structures, not in any particular order and certainlynot exhaustive:
