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You can use business valuation for various transactions, including mergers and acquisitions, investment decisions, and even internal assessments of the company’s value. Among the methods employed in business valuation, revenue multiples have gained popularity for their simplicity and accessibility. However, while revenue multiples can offer you quick insights, relying solely on them can lead to… Continue Reading

The post Revenue Multiples Can Mislead appeared first on ValuAdder Business Valuation Blog.

For a company a key measure of success is its ability to create a steady and predictable income. In other words, the business must generate desired returns for its owners given an acceptable level of risk. No other business valuation method captures this idea better than the discounted cash flow valuation method. What is Linear… Continue Reading

The post Automating Financial Forecasts with Linear Regression appeared first on ValuAdder Business Valuation Blog.

Creating an earnings forecast can be challenging when the current year is not yet completed, and only partial data is available. In this blog post, we will explore two methods of creating an earnings forecast with a partially completed year: using only historical data, and using proration. Method 1: Using Only Historical Data One way… Continue Reading

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In business, meetings of decision makers are often seen as valuable networking opportunities and sources of valuable insights. However, not all gatherings are created equal, and the Davos meeting of elites is a prime example. Perhaps larger corporations may find such events useful. But gatherings of this kind often prove to be irrelevant for small… Continue Reading

The post When the Davos elites meet should small business care? appeared first on ValuAdder Business Valuation Blog.

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.