Valuation Executive, Author at ValuationExecutive.com

05 July

Pros and Cons of Adjusted EBITDA in valuations

Choosing the appropriate earnings basis for your business valuation is key. One choice made by professionals is the Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). However, like any tool, it has its pros and cons, which merit careful consideration. Some points: Pros Normalization of Earnings and Expenses Adjusted EBITDA allows for the normalization… Continue Reading

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05 July

Why relying only on market comps in valuation is a bad idea

When it comes to business valuation, market comparables or comps is a commonly used method. In essence, you compare the target business to similar businesses that have been sold recently. While this method has its merits, relying solely on market comps can be unwise for several reasons. To obtain a more accurate and comprehensive valuation,… Continue Reading

The post Why relying only on market comps in valuation is a bad idea appeared first on ValuAdder Business Valuation Blog.

30 June

Technology’s Place in Contemporary Valuation Techniques

Rapid technological improvements are causing a huge upheaval in the valuation business, a crucial part of the financial sector. In addition to improving the precision and effectiveness of valuation procedures, the integration of artificial intelligence (AI), machine learning, and data analytics has ushered in a new era of tailored and …

30 June

Reporting fair value: Streamlined valuations to boost investors’ confidence

With the March 31 date having just passed, many India-based or India-focused private equity (PE), venture capital (VC), and alternative investment funds (AIFs) are required to disclose the value of their investments as part of the reporting process to investors. Various accounting standards such as US Generally Accepted Accounting Principles …

30 June

Evidence is Needed to Support a Business Value

Did you ever wonder how some courts can arrive at a business value that seems clearly out of character with the principles of business valuation? This frequently happens in divorce cases but can happen in other cases also—for example, in an economic damages case that relies on the diminution of …