Asset Approach—The Asset Approach adjusts a company’s assets and liabilities to their fair market values and adds to the Balance Sheet the value of intangible assets and any contingent liabilities. While tangible assets can be appraised and reported on an adjusted Balance Sheet accordingly, the valuation of intangible assets such as reputation, employee talent, etc. … Continue reading How To Value A Business: Asset Approach
Publications
Highland Global’s professionals regularly publish articles, white papers, and expert commentary in industry journals, online platforms, and financial publications. Our work reflects decades of experience in business valuation, SBA compliance, and strategic advisory services. This collection includes technical research, thought leadership, and peer-reviewed work designed to support education, transparency, and high standards in the valuation profession.
How To Value A Business: Market Approach
Market Approach—The market approach derives an indication of value by comparing the company to other similar companies that have been sold in the past. The “guideline publicly traded company method” uses the prices of similar and relevant public companies as guidelines for determining the value of a closely held or family controlled business. The “direct … Continue reading How To Value A Business: Market Approach
How To Value A Business: Income Approach
Income Approach—The Income Approach derives an indication of value based on the sum of the present value of expected economic benefits associated with the company. Under the Income Approach, the appraiser may select a multi-period discounted future income method or a single period capitalization method. The capitalization method estimates the fair market value of a … Continue reading How To Value A Business: Income Approach
How To Value A Business: Part 3
There are various approaches for business appraisers to utilize in determining the value of a business. Each approach has various methodologies that can be employed to determine the value of a business. The appraiser must then select the appropriate approaches and methods to apply to the company’s specific conditions to arrive at an indication of … Continue reading How To Value A Business: Part 3
How To Value A Business: Part 2
Under the fair market value standard, the hypothetical buyer is assumed to be a purely financial buyer seeking a return on the investment. The “financial buyer” lacks synergies or strategic benefits associated with the transaction. As a result, the fair market value estimate is typically lower than the “strategic value” estimate, which is based upon … Continue reading How To Value A Business: Part 2
How To Value A Business: Part 1
Business valuation often looks like a “black box” to those not involved in the profession of valuing companies. Entrepreneurs often ask, how do you value a business? In reality, value is a pretty simple concept. The value of any business, publicly-traded stock, or other financial asset is the sum of the present value of the … Continue reading How To Value A Business: Part 1
Selling Your Company
Introduction Business owners are confronted with a number of decisions each day that impact their business, the sum of which in the long-run, will have a significant impact on their lives. Over time, a privately-held business is likely to become the major asset of its owner. Given the tremendous financial, labor, and time investments that … Continue reading Selling Your Company
Valuation Disparities: Business Brokers v. Business Appraisers
Business brokers, business owners, and business appraisers often value the business differently. Business owners, in many cases, are biased in their views towards the firm, and therefore, have an inflated sense of value associated with the business. They value the business simply in terms of what dollar amount they want to realize from a transaction. … Continue reading Valuation Disparities: Business Brokers v. Business Appraisers
Earnings Assumptions: Common Errors
A business appraiser is confronted with many challenges with respect to developing earnings forecasts for a closely held or family controlled enterprise. This process may be complicated by ungrounded earnings forecasts provided by the executive management of the company. However, the skilled business appraiser typically will probe the financial engineering of the company’s management, leading to a … Continue reading Earnings Assumptions: Common Errors
Top 10 Reasons Business Owners Need a Business Appraiser & a Business Intermediary: Expand Exit Strategy Opportunities
Most business owners who have not been involved in a transaction before are likely unaware of the various exit strategy options that may be available. Professional business brokers and business appraisers are able to outline the possibilities for the business owner and the likely benefit of each option. Owner financing is an often used and … Continue reading Top 10 Reasons Business Owners Need a Business Appraiser & a Business Intermediary: Expand Exit Strategy Opportunities
Highland Global Business Valuations 