Understanding Business Valuation

Valuations are used for tax reporting, financial reporting, transactions, litigation, and strategic decision-making.

Over time, the fundamentals of business valuation have evolved. However, the basic approach to determining the value of a business has remained consistent. While valuation methods and data sources continue to evolve, determining a value remains grounded in professional judgment, financial analysis, and an assessment of future expectations.

The More Things Change…

The following business valuation quotations originated in 1959 and remain relevant today.

  • “Valuation of securities is, in essence, a prophecy as to the future.”
  • “Valuation is not an exact science.”
  • “Uncertainty as to the stability or continuity of future income from a property decreases its value.”
  • “Prior earnings records usually are the most reliable guide as to future expectancy.”

Core Methodologies Behind Business Assessments

Our Founder was the creator of a Pre-IPO Lack of Marketability database. The database contains more than 18,000 transactions and is used worldwide by leading firms and government agencies.

Our Founder is also the creator of the MergerShark database, a leading source of valuation and merger and acquisition data. To purchase a license for a database. Click on this link. www.mergershark.com

Additional professional resources include:

GettyImages-2209153588

Our Expert Analysis

We combine sophisticated financial analysis with years of market expertise to provide our clients timely and reliable valuation expertise. Contact Our Team.