Valuation

The valuation of a company is a subjective excercise that depends on numerous factors. Potential buyers will try to beat down your valuation every chance they get. This section will arm you with the tools needed to defend your valuation when it's time to sell.

Latest Valuation Articles

Valuation
Back to Basics: How to Calculate EBITDA

EBITDA is an oft-used but controversial measure that cut its teeth during the leveraged buyout frenzy of the '80s. EBITDA is ubiquitous in financial circles and is…

By: Chris Stavrou
Valuation
Video: What Is Goodwill?

Goodwill refers to the value of intangible assets in a business. In this video, John Carvalho, president of Stone Oak Capital and co-founder of Divestopedia.com,…

By: Divestopedia Team
Valuation
The Intellectual Capital Agrarian

Special note: This excerpt is used with permission from: Harvesting Intangible Assets: Uncover Hidden Revenue in Your Company's Intellectual Property, by Andrew…

By: Andrew J. Sherman
Valuation
Business Valuation Excel Template: 10 Simple Steps to Success

Knowing the value of your company should be an integral part of the strategic planning process for all business owners. There are some instances when a formal valuation…

By: John Carvalho | President, Divestopedia Inc.
Valuation
The Value of a Valuation

Whether looking at acquisitions or divestitures, understanding the factors that drive the valuation of a company is a crucial first step in the process, but one that…

By: Adam Croft
Valuation
Business Valuation: An Analysis of Risk

Analyzing risk is the predominate factor in valuing a business. The appraiser must analyze every aspect of the business and quantify his/her analysis of the…

By: George D. Abraham
Valuation
What’s Missing in EBITDA?

I’ve had a lot of conversations lately about EBITDA multiples. Generally, the question I receive is, “What do you think about this multiple? Is it…

By: Brad Mewes
Valuation
When an EBITDA Multiple Doesn’t Work for a Valuation

Owners often say they want to sell for strategic value. But when they’re questioned further, what they really mean is they want to sell for more than an EBITDA…

By: Dave Kauppi
Valuation
Podcast: Do You Know How Much Your Reputation Is Worth? An Interview with Mike Mooney

About the HostRyan is an entrepreneur, podcast host of the show Life After Business and the co-owner of Solidity Financial. Having personally experienced the hazards of…

By: Ryan Tansom
Valuation
The Myth of Fair Business Valuation: What Professional Valuations Don’t Tell You

So, how can Bear Stearns be worth about $20 billion dollars in January 2007 and be worth only $238M in 16th March 2008 — just 14 months later? And how can it be…

By: Chak Reddy
Valuation
Tying the Knot: Getting to ‘I Do’ with the Right Private Equity Partner

For a business owner, partnering with a private equity firm is a bit like getting married. While there may not be a clear consensus about how many months or years you…

By: Heather Madland
Valuation
5 Approaches to Generating a Track Record for a Winning Valuation

A company’s financial track record is one of the fundamental drivers of value. The stronger (and longer) the history of tangible growth, profitability and cash…

By: Jenifer Bartman

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