When Guideline Companies are Not Very Good? When given a choice, do you prefer to minimize errors of commission or omission? The answer will likely influence your view as to whether the market approach should be used when valuing a company with guideline companies that are not very good. Someone who seeks to minimize errors of commission will likely exclude the market approach due to the difficulties in exe ...

Few Business Owners Seem to Even Know How to Make a Good Guess at What Their Business is Worth.  NY Times Introduces Technology to Help—and Certified Advisers Provide Extra Value.  Mark Cohen, at The New York Times Small Business Guide, reports:  "At 53, Joe Ritz is old enough to remember a time when many of the classic cars that now pull into his specialized repair shop were new. “It’s one field where it p ...

New IBA Market Database Tools Empower Valuators to Provide More Concise and Accurate Results: Here’s How. The IBA Market Database includes close to 40,000 comparables, a valuation analyzer, and lots more. Paul French’s review, from the National Litigation Consultants’ Review (NLCR), explains the depth of data now available on the web, and explains how to leverage this exciting new tool. ...

Uncertain How to Assess the Legitimacy of Price Multiples? Here Are Some Tips! Rand Curtiss explains how to used reasoned judgment, statistical techniques, and comparative analysis to defensibly develop and support pricing multiples in an appraisal. ...

Good Grasp on Value Enables Better Tax & Retirement Planning, Reduces Conflicts The Washington Post's On Small Business blog cites data from a variety of sources that indicate most small business owners don't have a good grasp on the value of their business.  Written by Gerald Radican, the piece on the Post blog cites these findings from Spardata, a Maryland-based valuation firm: A typical business owne ...