Profitability

Factors in Determining the Level of Future Maintainable Earnings

by Arnold Shields 27 January 2010

Valuations are dependent upon a number of subjective assumptions. One of the main assumptions involves the level of expected future profitability. It is common to see as a basis for future earnings the average of the previous three years. Whilst the average of the previous three years may be appropriate, the reasons for choosing that basis are often not given [...]

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Business Valuation Rules of Thumb

by Arnold Shields 18 August 2009

Rules of Thumb in business valuations almost always benefit the seller of a business. Rules of thumb are often used to justify or validate the value of a business that is either unprofitable or uneconomic.

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Due Diligence or Business Review – Business Valuations

by Arnold Shields 30 July 2009

Due diligence or business review is an essential step in evaluating a target business or new business venture. It involves a detailed study of all aspects of the business.

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