Business Valuations

Checklist for the Evaluation of an Internet Business

by Arnold Shields 16 March 2010

I recently received an email asking us to value an online business and I developed a list of information that you should get to ascertain whether it is worth continuing in your investigations of the business.

When we are examining a business for business valuations or commercial litigation, we look at the financial statements, tax returns etc for the story that they tell about the business and comparing that to the story of the owners of the business.

Ideally those stories should agree, but it is not always the case.

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Understanding the Capitalisation Factor – Business Valuations

by Arnold Shields 27 January 2010

The most common method of valuing small profitable businesses is the Future Maintainable Earnings (FME) method. The formula for calculating the value of a business is: Future Maintainable Earnings X Capitalisation Factor = Value of Business The capitalization factor is defined as: “any multiple or divisor used to convert anticipated economic benefits of a single period into value.” That definition [...]

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Observations of the Family Law Single Expert System

by Arnold Shields 28 August 2009

I have been a single expert in the Family Court for business valuations and superannuation valuations for a number of years now and I thought that I would put forward my observations of the system.

The single expert system was introduced in part to reduce the costs of litigation.

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Business Valuations of Minority Interests in Private Company

by Arnold Shields 24 August 2009

We have often had to address the issue of minority interests when valuing businesses in litigation matters and business restructuring. A minority interest is one where the interest does not have control of the entity being valued, i.e. the shareholding is less than 50%.

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