The Crucial Role of Business Valuations in Deceased Estates

2023-11-20T16:02:05+02:0020 November 2023|

Dealing with the passing of a loved one is an emotionally challenging time but unfortunately, amidst the grieving process, there are practical considerations that must be addressed. One such crucial aspect is the valuation of private company shares within the deceased estate. The significance of a credible and accurate business valuation cannot be overstated, as it

Unleashing the Power of Online Business Valuations

2023-11-10T12:36:33+02:0010 November 2023|

In the dynamic realm of finance, auditors, accountants, and financial managers understand the pivotal role that accurate business valuations play in decision-making. Traditionally, many professionals have relied on cumbersome spreadsheets to conduct valuations, but the cloud as an operating environment brings a game-changing alternative—online business valuation applications. Accuracy: A Quantum Leap Forward One of the foremost

Ignoring business valuations can lead to nasty tax surprises!

2023-10-30T14:42:06+02:004 September 2023|

Various sections of The Income Tax Act, No. 58 of 1962, refer to and require the market value of assets. Determining an asset's market value is the Taxpayer's responsibility and the onus of substantiating a valuation rests with the Taxpayer. A poorly formulated or unsubstantiated valuation could lead to inaccurate tax assessments, penalties, and interest if

Business valuations: Should you do it internally or hire an expert?

2023-10-30T14:42:11+02:0024 April 2023|

A business valuation is an important process that helps shareholders and management determine the worth of a company. It involves assessing various financial and non-financial factors to determine the value of a business. But often, the question arises: should you do the business valuation internally or hire an expert? This article will explore the factors that

How business value is influenced by 8 business functions

2023-10-30T14:42:17+02:006 April 2023|

A business valuation is a process of determining the worth of a business entity, which is vital in mergers and acquisitions, partnerships, and strategic decision-making. As a business owner or director, building a high business valuation is crucial for the long-term success of your enterprise. A higher business value is not a random event or a

How to determine Beta in a business valuation

2023-03-02T09:07:03+02:002 March 2023|

The weighted average cost of capital (WACC) is a crucial component in determining the valuation of a company. The WACC represents the average cost of the various sources of capital (debt, equity, and others) that a company raises to finance its operations. When valuing a private company, business valuers usually face the challenge of determining the

Know your terms: business valuation versus business evaluation

2023-10-30T14:42:23+02:0021 February 2023|

The terms "business valuation" and "business evaluation" are frequently employed interchangeably, but they have significant dissimilarities that are worth comprehending. A business valuation involves determining the financial worth of a company. It is a quantifiable analysis that aims to estimate the value of the business considering various financial and non-financial elements, such as profits, liabilities, market

Calculate synergies from a merger

2023-10-30T14:42:29+02:009 February 2023|

The DCF (Discounted Cash Flow) valuation is a widely used financial tool to determine the present value of a company's future cash flows. It's commonly used in mergers and acquisitions to assess the expected financial benefits of the deal, including the synergies that would result from combining two companies. Synergies refer to the benefits of combining

Know your terms: Business Valuation vs Business Appraisal

2023-10-30T14:42:35+02:006 February 2023|

When assessing the Worth of a business, two terms often used interchangeably are "business valuation" and "business appraisal". According to the Merriam-Webster dictionary, the definition of "business valuation" is "the act or process of determining the value of a business or of a business interest." On the other hand, "business appraisal" is defined as "the act

Accountants: Are you a value builder or a scorekeeper?

2023-10-30T14:42:41+02:009 November 2022|

Many accountants undertake only annual accounting assignments, while others also compile monthly management accounts. Chances are good that there is always an element of consulting involved, whether it be tax consulting annually, monthly or on an ad-hoc basis. When you compile monthly management accounts, you may be more closely involved with critical business decisions. Are you

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