2.12 Normalization adjustments in valuation reports
The definition of fair market value (which is the goal of most business valuation reports) implies that a valuation report... View Article
Read ArticleCategories for 2. Common Methodologies in Valuators’ Reports
2.13 Sustaining capital expenditures
Capital assets, also referred to as fixed assets or property, plant, and equipment, are probably one of the biggest items... View Article
Read Article2.14 Taxes in valuators’ reports
At MVI we believe that complex tax issues are best handled by tax experts. This is both in the interest... View Article
Read Article2.15 Disposition costs in valuators’ reports
An informed and prudent buyer is unlikely to pay as much for the shares of a company as they would... View Article
Read Article2.16 Materiality in valuators’ reports
When a business valuator values a business using the capitalized cashflows method, he or she will exercise judgment in respect... View Article
Read Article2.17 Industry analysis in valuators’ reports
The analysis of the risks and prospects of the industry in which a business operates is an important part of... View Article
Read Article2.18 Tangible asset backing (TAB)
When calculating enterprise value, operating earnings should be matched with the tangible net assets that back such earnings. In calculating... View Article
Read Article2.19 Hindsight in valuators’ reports?
If only I knew then what I know now – it is often said that “hindsight is 20/20.” Both the... View Article
Read Article2.20 Discount for lack of control (minority discounts)
One of the major goals of a business valuation report is to conclude on the fair market value of all... View Article
Read Article2.21 Discount for lack of liquidity (marketability discounts)
It is common knowledge that the shares of publicly traded companies have a ready and usually liquid market. This liquidity... View Article
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