Business Valuations

The valuation date is an important cutoff point for information that can be used to value a business. But valuators sometimes consider events that happen after that date if they’re “known or knowable.” Here’s an overview of this principle and possible exceptions.

How does industry risk affect business valuation? Here’s how valuation pros answer this critical question.

Business bankruptcies skyrocketed from 2022 to 2023. Here’s how a solvency opinion may be used to evaluate financially distressed companies, along with three tests valuators use to assess solvency.

Management interviews provide important fact-finding opportunities when valuing a business. Beware: In litigation, skipping this step may compromise a valuator’s credibility and the quality of his or her opinion.

For businesses contemplating bankruptcy, a valuation can help management decide how to proceed. But these business valuations differ from those of healthy companies.

How much control does a business owner have? How readily can the business interest be converted to cash? These questions need to be addressed to determine the appropriate level of value in a business valuation.

When drafting or updating a buy-sell agreement, it’s important to cover all the value-related bases. Missteps can prove costly, as a recent case demonstrates.

Transaction databases: Handle this information with care when valuing a business.

Thinking about using an ESOP as an exit strategy? Business valuations are critical to avoid missteps with the IRS and U.S. Department of Labor.

Lost profits vs. lost business value: What’s right for your case?

How much should owners and executives receive as compensation for services rendered to the business? A valuation pro can provide an objective, defensible estimate that will withstand scrutiny.

The number of businesses filing for bankruptcy has skyrocketed so far in 2023. But bankruptcy isn’t always an ending. Done right, it can provide a fresh start.