Business Valuation

There is no formula to determine the value of a business. Companies, like the processes used to value them, are complex. By its nature, the value determination reached in a business appraisal is ultimately an opinion. To ensure our opinions are the strongest possible, we must understand the critical aspects that drive the value of a business as well as the risks it faces and use the best techniques to determine how those drivers will impact the company’s future profitability.

A business is worth what its future cash flows are worth today, so researching the industry and the business’s future expectations is critical to determining a business’s value today. Our breadth of industry knowledge and practical experience can provide valuable insights when making these assessments.

The theory behind the appraisal of businesses and their assets is well-founded in academic publications and empirical studies based on public markets. While public markets provide the foundation of the valuation methods used to appraise a private business, there is no public market available to validate the conclusion of the value of a private company. Consequently, we must use our years of experience and up-to-date training to ensure we properly use recognized valuation methodologies which, when combined with rigorous analysis of the business, form the underlying foundation of our valuation.

Put Alexander CPA to work for you, whether valuing a business as part of your estate planning, business planning, or as part of a negotiation.