The relevance of historical and forecast periods in a business valuation

When using the income approach for a business valuation, the assumptions on which the free cash flow forecast or dividend of the business is calculated should make sense in terms of the business’s history. Let us look at which periods should be selected to display and use in the valuation. History tells a story about

2022-03-24T14:20:47+02:003 August 2020|

Choosing a business valuation method

When valuing a business there are a few approaches or methods that could be taken. Let’s have a look at those approaches and in which circumstances they would be most appropriate. There are generally three approaches: the market-, income- and cost approach. Market approach This method of business valuation applies certain

2022-03-24T14:22:32+02:0014 July 2020|

The need for business valuations in an economic downturn

The rapid spread of the COVID-19 virus and the subsequent lockdown measures caused a hammering of an already weak economy. It is expected that it will take some time for the economy to recover, which will naturally impact on the risk appetite of businesses. But how will this play out in the mergers and acquisitions

2022-03-24T14:25:20+02:003 June 2020|

Business Valuation: Art or Science?

Is business value determined by skilled negotiators or is it an accurate and well-founded calculation performed by a skilled valuer? There are two schools of thought on the determination of the value of a business: Value is a function of negotiation in the marketplace versus the outcome of sophisticated calculations based on facts and statistics.

2022-03-24T14:29:04+02:0024 April 2020|
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