Is Inventory Included in the Final Value? (6-7 minute read) An SBA compliant business valuation should reflect the structure of the proposed purchase terms. If the subject company is a...
The conclusion of value in any business valuation includes all operating tangible and intangible assets. Tangible assets can include working capital plus fixed assets such as furniture, fixtures...
To understand how an owner’s involvement in a business affects its value, one must first understand how the company being valued is operated. The owner’s involvement in any...
“What is my company worth?” This seems like such a simple question, but in reality, is quite complex to answer. In today’s world, no two businesses are alike,...
To first understand how to mitigate the risk of customer concentration, you first must understand what customer concentration means. Customer concentration is a measure of how total revenue...
Recurring revenue is the portion of a company’s revenue that will continue into the future. It is important to note that these are not the revenues that are...
When performing a business valuation, many different risk factors have to be taken into account, including barriers to entry. Barriers to entry are the obstacles or hindrances that...
Company Specific Risk (CSR) is a specific risk rate that is applied to any one company and can greatly affect its value. CSR is a subjective adjustment made...
Companies may report secondary sources of income that are not derived from its main business on their income statements. To determine whether this income should be included in...
Financial statements are helpful for showing the financial activities of a business. They are based on accounting principles or income tax regulations and serve as formal financial records...