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?

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

How do experts with who you have no regular contacts see the future? The question may have occurred in your mind often, but gets lost in the hustle of routine papers at the office.

Business valuation requires trust, so the number crunching is done by people who know your pet peeves! Well, everyone has blind spots, so how do you avoid future downsides which no one over who you wield power… Read all of The Delphi Version of New Business Valuation

It is not a mere truism that ‘no one knows the future for sure’ when it comes to business valuation! Do not allow zealous defense of point estimates and forecasts sway you, because if something can go wrong, it probably will!

There are no financial gains in revengeful performance appraisals, and the authors of that horribly wrong business valuation of the past, may not be around anyhow! A decade is par… Read all of No Business Valuation Makes Sense without a Sensitivity Profile

The most attractive business valuation is a trap if its pushes up your head count. Conditions tend to change, but people, especially the ones you no longer need, do not go away for free! Countries with militant labor are the worst in this respect.

You could be saddled with armies of blue collar workers who drag the enterprise down a bottomless pit. Some emerging economies intentionally lure you with incentives to… Read all of How Does Business Valuation Affect Your Fixed Commitments?

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