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
business valuation
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
Discount Statistics Of Closed-End Funds Update For The 3rd Quarter 2012
This article will update the Highland Global study, “Discount Statistics of Closed-end Funds,” (originally published in November 2005 and updated quarterly) for data relating to the third quarter of 2012. The original article with more details regarding discount statistics of closed-end funds is available at http://www.HighlandGlobal.com. Historic releases of our research can be accessed from … Continue reading Discount Statistics Of Closed-End Funds Update For The 3rd Quarter 2012
Discount Statistics Of Closed-End Funds Update For The 2nd Quarter 2012
This article will update the Highland Global study, “Discount Statistics of Closed-end Funds,” (originally published in November 2005 and updated quarterly) for data relating to the second quarter of 2012. The original article with more details regarding discount statistics of closed-end funds is available at http://www.HighlandGlobal.com. Historic releases of our research can be accessed from … Continue reading Discount Statistics Of Closed-End Funds Update For The 2nd Quarter 2012
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
Top 10 Reasons Business Owners Need a Business Appraiser & a Business Intermediary: Financial Analysis and Fairness Opinions
It is not uncommon for the business owner pursuing a sale of the business to require additional financial analysis services from a business appraiser during the sale process. This financial analysis may involve updates to the original valuation based on changing circumstances after the initial report, analysis relative to potential synergies and the impact on … Continue reading Top 10 Reasons Business Owners Need a Business Appraiser & a Business Intermediary: Financial Analysis and Fairness Opinions
Top 10 Reasons Business Owners Need a Business Appraiser & a Business Intermediary: Part 1
Many small business owners are individuals who have started or acquired a “lifestyle” business—a business that provides the owner with a job and enables the owner to maintain their desired lifestyle. Most of these business owners have considered or will consider an exit strategy from their enterprise. Consideration of an exit strategy may be prompted … Continue reading Top 10 Reasons Business Owners Need a Business Appraiser & a Business Intermediary: Part 1
Highland Global Business Valuations 