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.
What can create an error in your Balance Sheet market value number?
- Asset Value
- Undocumented liabilities
- 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.
Learn more about Business Valuation Principles by Dale S Richards https://successbiznow.com/books/business-valuation-principles-by-dale-richards/
ABOUT DALE S. RICHARDS:
Preview Dales presentations: Watch Dale In Action Dale S. Richards specializes in management, marketing, operation optimization & business valuation consulting and is a 25+ year turnaround expert. He has implemented success concepts into results in 150+ companies. Dale is a Certified Valuation Analyst (CVA) with NACVA, a Vistage International CEO-Board Chair in Utah and a World and Vistage International Speaker. Visit www.successbiznow.com to learn more about Dale and business valuation services.