Archive for January 2018
Valuation Engagement vs. Calculation Engagement in Business Valuations – What’s the Difference?
When hiring a valuation specialist to estimate the value of a company or interest in a Company, there are two types of engagement formats you need to be aware of. Under the AICPA’s Statement on Standards for Valuation Services No. 1 (SSVS No.1), the two types of engagements are a valuation engagement and a calculation…
Read MorePitfalls In Relying On Rules Of Thumb To Value A Business
Don’t Get Caught in the Rule of Thumb Trap In determining the value of a small privately-held business, business owners and buyers of businesses often rely on rules of thumb pricing multiples. Using rules of thumb is considered a “market approach” in valuing a business since the multiples are based on actual sales of businesses.…
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