Mar 07 Using Rules of Thumb in Valuing a Business
[caption id="attachment_2355" align="alignright" width="300"]
Rules of thumb may be easier, but considering factors such as cash flow and risk lead to a more accurate business valuation.[/caption]
From time to time, I receive a call from someone who wants me to tell them the value of a business that they want to buy or sell. They provide a few items of information, such as last year’s sales or net income and expect that I will apply a multiple to quickly and easily come up with a value*.
What they are asking me to do is apply a rule of thumb.
Feb 19 Goodwill and Your Business
What is goodwill? How is it measured? Why is it important? Goodwill is often misunderstood by owners of closely-held businesses. Here are some insights into goodwill and how you can create or increase the value of goodwill in your business....
Feb 09 Why You Need a Business Valuation
When is it necessary to have a business valued? There are many more reasons than you think!
- The most common need for a valuation arises in the purchase or sale of an existing business. Whether the entire business or a partial interest is being sold, a good valuation is a necessity.