Business Valuation

Contingency planning limits business valuation success. Actions have to be timely, coordinated, and effective, when plans made on paper, go wrong at ground zero.

Business valuation can become quite useless if an organization does not detect signals of danger early enough to contain damage. The risk management approach promotes a culture which safeguards precious capital resources.

Business valuation becomes bureaucratic and ritualistic if you insist on contingency planning for every risk. There… Read all of The Contingency Planning Chapter of a Business Valuation Report

Business valuation proposals are generally prepared by domain experts. They know a sector of industry and a function of management so well, that they often do not ask basic questions. They overlook, by the same token, changes in conventions to which they have become accustomed.

A professional who knows the path through thorough investment analysis may ask naïve questions when first introduced to a new venture, but this seeming innocence can… Read all of Unstated Assumptions in Business Valuation

The triad of brands, goodwill, and know-how has no slots in financial statements, and therefore tend to be left out in formal business valuation. Yet, they can spring nasty surprises on an investor, and leave a seller in hopeless recrimination as well!

The value of brands is relatively well known, but finance professionals, who generally lead business valuation exercises, are usually at a loss to discern trends in rank, image, and… Read all of Do Not Forget Intangibles in Business Valuation

Discounted cash flows dominate business valuation to a fault. Though the principle is right, there is a tendency to prevaricate when it comes to sticking your neck out on projections. The distant future is always rosier than the present in most business valuation thinking!

The rate at which projections are discounted are more related to present inflation than to uncertainties of the future-they can mislead though the sophistication of analysis and… Read all of Does Your Business Valuation Have a Credible Pay-Back?

Business Valuation with Revalued Assets

Real estate and civil construction are almost invariably undervalued in business valuation. Land assets tend to appreciate, though inadequately maintained buildings may suffer the opposite fate. Either way, it is worth getting property agents and engineers to put new numbers on the fixed assets of a business.

Furniture and fixtures are rarely material, unless there are some antiques involved, but new plant and machinery may cost much more than amounts in… Read all of Business Valuation with Revalued Assets

It can be easier to jog up the stairs than to find the mental energy to study a business valuation thoroughly! We may often be to blame, insisting of stringent norms of brevity, which do more justice to egos than to capital resources!

However, planners let loose, can indeed fire volleys of pages which can match theses by weight! Who is not short of time, and left wondering how to be… Read all of Disinfect that Business Valuation with Pointed Questions