PeerComps Blog
Navigating the Complexities of Selecting Comparable Companies for Unique Industry Transactions
As part of the valuation process, one of the most formidable tasks for appraisers is sourcing quality, comparable transactions. This challenge is especially magnified because there are no reporting requirements for privately held company transactions. This leads to transaction databases with inaccu...Read More
Unlocking the Secrets of Peer Comparison: How Your Business Stacks Up Against The Industry
Valuing a privately held company uses three approaches to value; Cost Approach, Market Approach, and Income Approach. The market approach is calculated using peer comparison transactions of other similar companies in the same or similar industry sectors and is based on the Principle of Substitution...Read More
Maximizing Your Business Value: Insider Tips for Effective Business Valuation in Exit Planning
Business valuations serve many purposes, but what may be the most important purpose it can serve for a small business owner is exit planning. Exit planning is just that, the process of planning the sale which means you also need time to execute that process to maximize your business value before th...Read More
Intangible Assets: What They Are and How They Can Add Value to Your Business
The value of a business is made up of 2 items, tangible value and intangible value. Tangible assets are just that, tangible items like Inventory, FF&E, Vehicles, or anything that is used to develop a product or services that a company sells. What’s left is intangible. These intangible assets...Read More
How Does Transaction Data Impact the Accuracy of Your Business Valuation?
Of the three approaches to value in a business valuation (Cost, Market, and Income), the Market Approach, which relies on comparable transaction data, can be a powerful source of accuracy, strength, and credibility to the value conclusion. Published transaction data is only as reliable as the sourc...Read More
How Small Businesses Can Determine The Value of Their Business
To small business owners, their businesses are typically the most valuable asset in their portfolio. However, determining or calculating the value can be tedious and costly. But with 26.5 million U.S. businesses out there and more employer businesses shutting down each month, it’s important to un...Read More
5 Key Drivers that Make a Small Business More Valuable
Small business valuations are essential not only for companies that are trying to not only determine their overall value, but for maintaining pertinent financial information, as well. Small business valuations are influenced by the need for a determination of value, but the value isn’t necessaril...Read More
How a Business Valuation Can Help Your Client Make a Smart Investment
Whether you’re facilitating an individual’s first ever business acquisition or working with a seasoned entrepreneur, there is always a common bottom line when it comes to investing in a business—making a smart decision that yields a return on investment. When your clients look to you for a...Read More
6 Tips for Getting an Accurate Business Valuation
Determining the value of one’s company is an important aspect for any business. In order for you to get an accurate business valuation analysis, there are a few aspects to consider. Consult a Business Valuation Firm An experienced business valuation firm can work with you throughout every s...Read More
Coin Laundries Pack a Value Punch
Darren Mize, ASA While small and simple, these businesses pack a “value” punch averaging 3.43 x SDE. Why the high multiples? Recession proof: even in a down economy, people need clean clothes Requires one employee: the owner Minimal management: emptying coin slots and keeping ...Read More