Business
Valuation
What is Business Valuation?
Business valuation is the process of determining the economic value of a business or interest in a business. It involves applying various valuation methodologies to assess or estimate a company’s value at a given point in time. Value, in the context of business valuation, is commonly referred to as fair market value, which is defined by the IRS as:
“The price at which the property would change hands between a willing buyer and a willing seller when the former is not under any compulsion to buy and the latter is not under any compulsion to sell, both parties having reasonable knowledge of relevant facts.”
Business valuations require an experienced, qualified appraiser and significant professional judgement.
Reasons for a Valuation
There are many reasons business owners may need a valuation. Common needs and use cases are listed here and explored in more detail throughout our website. In addition to addressing their specific needs, owners can learn new insights about their business through the valuation process that can lead to changes that build lasting value.
Our Process for
High-Quality Valuations
Our goal is to create a seamless valuation process, allowing you to focus on your business. Here is what you can expect when working with Adamy.
Our Process for
High-Quality Valuations
Adamy Valuation is dedicated to providing qualified appraisals coupled with the highest level of client service. Our goal is to create a seamless valuation process, allowing you to focus on your business.
Complete & sign the engagement letter.
Introduction to our team & initiation of information gathering.
Our team conducts a detailed financial analysis.
Interview with key leadership for management insights.
We develop the valuation analysis & follow up with any questions.
Delivery of the draft report.
We explain & educate you on the valuation, highlighting key drivers, risks, & opportunities.
Delivery of the final report.
We remain your trusted advisor as you continue your growth journey.
Understanding Valuation Approaches
It requires significant professional judgment when determining which valuation approaches to apply to a subject company. Some business valuations will call for multiple methodologies and require the appraiser to apply various techniques to reconcile the indications of value. Multiple methods, resulting in multiple indications of value that all validate each other can result in more defensible company appraisals.
Asset-Based Approach
The asset-based approach determines value using the values of the underlying net assets (assets less liabilities), including intangible assets such as goodwill. This approach is typically used in valuing holding or investment companies.
Income
Approach
The income approach determines value using the present value of current or expected future cash flow. This approach is used frequently in valuing the stock of a profitable operating company.
Market
Approach
The market approach determines value using comparisons with either publicly-traded stocks or completed transactions involving similar businesses. A group of guideline companies with enough important similarities can provide valuable market insight and useful data that can be used as the basis for a reliable indication of value.
Related Insights
Business Valuation 101
The Human Expert and Valuation
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Business Valuation: What is the Deliverable?
Have you ever wondered what goes into a detailed business valuation report? Dive into the intricacies of a 70+ page narrative that adheres to professional standards. Discover the methods, reasoning, and expert opinions that make it invaluable....
The Benefits of Working With Adamy
Discover how our business valuation process enlightens clients, leading to profound insights and positive changes in their business strategies. Join the journey of discovering and enhancing the value of your business. https://vimeo.com/871515897/cd9a13758e?share=copy...
The End Result
A robust valuation that properly reflects the unique aspects of your business.
What Can Adamy Do For Your Business?
We are lifelong learners who serve clients by solving meaningful financial problems.
