The total of all consideration passed at any time between the Buyer and Seller for an ownership interest in a business enterprise and may include, but not be limited to, all remuneration for tangible and intangible assets such as furniture, equipment, supplies, inventory, working capital, noncompetition agreements, employment and/or consultation… Read More »Transaction Value
The act or process of determining the value of a business, business ownership interest or intangible asset(s) using one or more valuation methods
A general way of determining a value indication of a business, business ownership interest, security or intangible asset using one or more valuation methods. The three common valuation approaches are the market approach, the income approach and the asset approach.
The specific point in time as of which the valuator’s opinion of value applies (also referred to as “Effective Date” or “Appraisal Date”).
Within the three valuation approaches approaches, there are a number of specific methods to determine value. Each method is a specific way to determine the value of a security, business, business ownership interest or intangible assets and hence estimate its worth.
DE jure Control of a business enterprise. DE jure means Existing in law, or having formal, legitimate, moral, or rightful effect, force, or possession.
The Cost of Capital (Discount Rate) determined by the weighted average, at market value, of the cost of all financing sources in the business enterprise’s capital structure.
Valuation method used to determine an average cash flow, taking into account that sales and profits may vary from year to year.
The excess of the value of the current assets over the value of the current liabilities. This value will be negative if current liabilities exceed current assets. Understanding your needs Getting a true understanding of your working capital needs may involve plotting month-by-month inflows and outflows for your business. A… Read More »Working Capital