Category Archives: Valuations

Why do Lawyers Need Forensic Accountants in Court?

Optimize Your Fraud Detection Forensic accounting is a specialized accounting field where professionals investigate financial records to detect and analyze issues related to financial fraud, embezzlement, allegations of bribery, and other irregularities. This discipline encompasses not just the ability to record and report financial data but also the legal and investigative skills to uncover fraud,…  Continue Reading »

How a Site Visit Can Enhance Business Valuation Precision

I am often times ask why I need to do an onsite visit of a company.  In the multifaceted process of business valuation, a site visit stands as one of the most pivotal components. A site visit implies a meticulous walkthrough of the business premises, offering the valuator an in-depth perspective and comprehension of the…  Continue Reading »

Why is a Business Valuation so Expensive?

The cost of a business valuation can vary depending on several factors, and while it may not always be extremely expensive, there are several reasons why it can be a significant investment. Here are some factors that contribute to the cost of a business valuation: Complexity of the Business The more complex the business structure,…  Continue Reading »

The Five Forces of Industry

Revenue Ruling 59-60, the Holy Grail of Business Valuations states that industry analysis is a factor that is fundamental and requires careful analysis in each case. The question becomes, where do you find information on how to analyze an industry. Five Forces of the Industry Michael Porter, Ph. D, discusses the five forces of the…  Continue Reading »

Can I Have Your Business Valuation Model So I Can Update It Myself?

Performing a business valuation is a complex task.  It can require 40 hours with no work experience to approximately 132 hours of training with 10,000 hours of work experience to obtain a business valuation credential.  Obviously the 132 hour training program is more in-depth and rigorous. Business Valuation Certifications The intent of these types of…  Continue Reading »

What Does Fair Market Value Mean to Me?

For a business valuation, different Standards of Value are defined differently but the application of approaches and methods may be different. Definition of Fair Market Value “… as the price at which the property would change hands between a willing buyer and a willing seller when the former is not under any compulsion to buy…  Continue Reading »

How to Disqualify an Expert that Uses a Calculation of Value

Different States have different standards for determining the business value in litigation settings.  Typically the standard of value will be Fair Market Value or Fair Value.  The standard of value sets the requirements for the development work needed to be completed by the business valuator.  The standard of value describes the circumstances under which the…  Continue Reading »

An Easy Way to Discredit a Business Valuation Expert

Upon completion of a business valuation report, the expert wants to convey to the readers that work was completed and the conclusion reached.  Not having a conclusion as to the work performed is a waste of time money and effort.  The Statement on Standards for Valuation Services #1(”SSVS #1”) are the Professional Standards followed by…  Continue Reading »

How Can Valuation Experts Have Widely Differences of Opinion?

When two experts perform a business valuation on a company, the likelihood of both of them having the same value is probably slim to none. Assuming the two experts are equally qualified, have well respected business valuation designations and equivalent years of experience, maybe the values would be similar. There are numerous factors that come…  Continue Reading »

What is a Business Valuation Review?

There are a number of questions that I have encountered and explained to both clients and attorney’s related to reviewing business valuation reports. These are often called review reports or rebuttal reports. The Accredited in Business Appraisal Review (“ABAR”) is a certification that teaches business valuation professionals on various techniques for reviewing a business valuation…  Continue Reading »

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