Professional Business Valuations

Professional business valuations are comprehensive assessments of a company or businesses worth, typically conducted by financial experts or valuation specialists. These valuations are crucial for various purposes, including family law matters, mergers and acquisitions, investment decisions, financial reporting, taxation, litigation, and succession planning.

Key components of a professional business valuation often include:

Financial Analysis: Reviewing financial statements, cash flow projections, and other financial metrics to understand the company's historical performance and future prospects.

Market Analysis: Assessing the industry and market conditions in which the business operates, including growth trends, competition, and market risks.

Asset Valuation: Determining the value of tangible assets such as property, equipment, and inventory, as well as intangible assets like intellectual property, brand value, and goodwill.

Income Approach: Using methods such as discounted cash flow (DCF) analysis to estimate the present value of future cash flows generated by the business.

Market Approach: Comparing the subject company to similar businesses that have been sold recently or publicly traded, using multiples such as price-to-earnings (P/E) ratio or price-to-sales (P/S) ratio.

Cost Approach: Evaluating the cost to replicate the company's assets and operations from scratch, adjusted for depreciation and obsolescence.

Risk Assessment: Identifying and quantifying various risks associated with the business, including operational, financial, and market risks.

Discounts and Premiums: Applying discounts for lack of marketability (DLOM), lack of control (DLOC), and other factors that may affect the value of the business.

Final Valuation Estimate: Integrating the results of the different valuation approaches to arrive at a comprehensive estimate of the business's total value.

Professional business valuations require a combination of financial expertise, industry knowledge, and analytical skills. They are often conducted by certified valuation professionals or firms with experience in performing valuations for a wide range of purposes and industries. The accuracy and reliability of a business valuation are critical, as they can have significant implications for stakeholders involved in decision-making processes.

The principle of Business Reports and Values, Lee Goldstein, has been involved in Business Valuations since 1985. He holds the following qualifications:

Double Major Degree in Accounting and Finance

Diploma in Forensic Accounting

Graduate Diploma in Valuation

Advanced Certificate of Business

Advanced International Certificate in Intellectual Property.

Lee is often called upon to provide expert testimony in judicial matters and has conducted numerous intellectual property valuations covering a diverse range of industries. Lee has valued businesses and intellectual property worth over $3.2 billion.