Want to take a graduate course from a leader in valuing your business?
Another semester has begun for Aswath Damodaran, Professor of Finance at the Stern School of Business at NYU, who’s perhaps the best-recognized teacher of corporate finance and valuation. He comments in his Musings on Markets he is “just as excited as I was the day that I taught my first class” in 1986.
Here are two of several [...]
Business owners and brokers can find 142 more current private company financials and market comps
Doug Twitchell, Publisher of Pratt’s Stats, let businessvaluation.com know that 142 private company deals were just added to the database. Updates occur regularly so that private company owners, business brokers, and business appraisers can review current transactions to get a better sense of market pricing.
The new deals include financial statements, deal terms and purchase price, for [...]
Thinking of acquiring a business? A fairness opinion provides protection
If you’re in acquisition mode, there’s a small legal detail you may face–getting a fairness opinion. During the recent BVR webinar on fairness opinions, Jeffrey Rothschild (McDermott Will & Emory) told the audience there are generally two different models of fairness opinions; one by Goldman Sachs and the other by Houlihan Lokey. The Goldman model [...]
BV.com recommended by New York Times small business center
Owners looking to sell can benchmark their financial thinking by using Pratt’s Stats and other databases available from BV.com–as reported in the New York Times.
What’s your software company worth?
This Thursday June 24th, BVR’s Webinar Industry Spotlight Series presents “Software Company Valuation,” hosted by Mike Pellegrino (Pellegrino & Associates) and Robert Schlegel (Houlihan Valuation Advisors). Schlegel and Pellegrino, a former software engineer and author of BVR’s Guide to Intellectual Property Valuation, will tackle the valuation challenges appraisers face when valuing software companies–and how owners can create more value. [...]
Need to benchmark your performance? 7-year industry reports may be your best bet
Many owners, analysts, and CFOs are discovering that they can’t capture the current full buzsiness cycle with the standard 3 and 5 year financial history reports available from RMA and other providers. To solve this problem, BizMiner has added 2002-2004 data to their reports so that subscribers now have a choice of selecting 3 yr., [...]
Are you overleveraged now? What is it costing you?
Here’s a really helpful thought from the ClarityBV Blog:
One of the most common ways to measure leverage is the debt to equity ratio. However, in recent years many tools that are more sophisticated have been developed. One of the most popular of the recent tools is the Altman Z-Score, a formula for predicting bankruptcy.
You might be [...]
Depressing: median sale price/revenues is now 47%
If you’re thinking of selling your business in 2010…take care. Valuation multiples have definitely taken a fall over the past two to three years, and the newest data from Pratt’s Stats® shows no sign of the much-publicized “recovery:”
Year of Sale
Count
Median revenue
Median selling price
Median price/ sales multiple
Median price/ gross profit
2007
1,493
$844K
$419K
0.58
1.03
2008
1,626
$535K
$250K
0.52
0.88
2009
862
$483K
$207K
0.47
0.74
“It’s important to note that the above includes [...]
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