The other day, someone came to me about valuing their business and mentioned that he thought his $1 million profit before interest and tax business was worth $20,000,000 because companies in his industry on the stock exchange traded on Price to Earning (PE)…
Terminal Value In most business valuations, the business is expected to run in perpetuity. The exception being businesses with a finite life like mines or toll roads. Valuations will forecast earnings for say 5 or 10 years and then the…
Value has different meanings to different people depending upon their opinions, or circumstances in which it applies. The value of a luxury motor car will have different values to people depending on their income level, perceptions of the vehicle, and…
When someone is looking to buy your business, they are looking to buy one of three things: YOU – your skills, expertise, knowledge contacts YOUR CUSTOMERS – or more specifically the cashflows that those customers generate YOUR SYSTEMS – or…
In this webinar replay: What is the Value of Your Business and How To Maximise Its' Value. Download slides here: ->Dolman Bateman - What is the Value of Your Business Ever wondered why angel investors make millions from their investments.…
One of the most common mistakes that people make is to add back depreciation in business valuations on the basis that it is a non-cash item. Whilst this is correct in discounted cash flow valuations, because depreciation is added back…
One of the most common issues that I get asked is why should we deduct the owners salary from future maintainable earnings in business valuations. The most common reason why the owners salary should not be deducted is that business…