Historical numbers do not necessarily reflect the future

Historical numbers do not necessarily reflect the future

Do not be satisfied with just one value method or a report that does not explain the various methods with the calculations and assumptions, especially when it comes to having your business valuated.

There is no “ONE NUMBER” in valuation. Therefore, the more calculations and results the greater the ability to use the data to achieve the results needed for any valuation objective.

Historical numbers do not necessarily reflect the future

1. Asset Value
2. Undocumented liabilities
3. Inventory
4. even your Accounts Receivable, just to name a few.

If a business valuation report only includes the historical value calculation, then there may be a problem there also. With just one number, the user only has a myopic view of what the company value may be. It would be very hard to see what circumstances may be possible to increase the company value.

At Excel Management Systems, I like to analyze and calculate two to six Income Method valuation calculations. Many times a historical number does not reflect the direction of the business performance for the future.

With just one number, the user only has a myopic view of what the company value may be.

Great Business Valuation and Optimization presentation by Dale Richards per Dave, Ohio

Great Business Valuation and Optimization presentation by Dale Richards per Dave Hastings, Hastings Water Works, Brecksville, Ohio. Dave learned key business concepts from Dale Richards’ presentation on Business Valuation Principles – How to Increase Your Business Value, Financially, Operational and Strategically.