Valuing a Small Business in its Startup Phase
One of the questions I have been asked lately is, “How does one appraise a business that has no historical record?” Many of the analyses and valuation techniques that [...]
Normalizing Adjustment – Rent
Small business owners have discretion about what gets reported as operating expenses and how they report those expenses. As business appraisers, part of our job is to analyze the [...]
Happy New Year
Happy New Year! No, that is not a typo in the greetings, and wish you all to have a Happy New Year! Spell check has flagged it for me [...]
Use Correct Income Stream
Value = Income / Risk That is a very simple formula. The math can be done on any calculator, and the result is easy to understand. Unfortunately, the variables themselves [...]
Valuing a Business That Has No Future
“The value of an operating business is based on its expected future earnings.”That is the line I often hear when discussing how to determine the fair market value of [...]
What Does the Business Appraisal Process Look Like?
One of the most commonly asked questions in all the various classes I have taught to new business appraisers is a two-parter: “How do I start my first report, and [...]
