Owners’ compensation: A critical business valuation adjustment

Owners’ compensation can be a subjective — potentially contentious — issue when valuing a closely held business. Here’s ...
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A business valuation is critical to a successful PE transaction

For a business owner, selling the company to a private equity (PE) firm can be one of the ...
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FAQs about using the market approach to value a business

The market approach is based on a straightforward premise: A company’s value can be derived from the prices ...
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Demystifying discount rates used in business valuations

Valuation professionals often use discounted cash flow (DCF) techniques to determine the value of a business or estimate ...
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Special considerations when valuing start-up businesses

Valuing an established business typically starts with analyzing historical financial performance. However, most start-ups have never generated positive ...
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FLP on trial: Tax Court denies valuation discounts

A family limited partnership (FLP) can be a powerful tool for consolidating and managing family wealth while reducing ...
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How market volatility may affect valuation discounts for lack of marketability

When determining how much a business is worth, a valuation professional must evaluate current market conditions — and ...
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Valuation is the foundation of every sale-ready business

Are you thinking about selling or merging your business? In September 2025, the Federal Reserve Bank lowered its ...
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Beyond EBITDA: Key factors that affect business value

Obviously, financial statements play a critical role in valuing businesses for mergers and acquisitions (M&As). Prospective buyers turn ...
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How financial statements unlock business value

As calendar-year entities start work on their year-end financials, it’s important to remember that financial reporting is about ...
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Blockage discounts: Size counts in certain stock valuations

When valuing large blocks of publicly traded stock, business valuation professionals sometimes apply a “blockage discount.” This adjustment ...
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Beware of potential pitfalls when valuing a business under the income approach

Valuing a business using the income approach may seem straightforward: Estimate future earnings and apply a risk-based discount ...
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