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Frequently Asked
Questions
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What are
the Valuation Methodologies?
At the
Business Development Company, we utilize
business valuation methodology that
ranges from the traditional to the most
advanced. And, regardless of the
complexity of the methodology, we
approach each analysis with the highest
level detail and thoroughness.
Depending on the type of valuation,
business valuations can potentially get
reviewed by the IRS, the court, and/or
other valuators. An honest and
thorough valuation opinion will help
your value withstand scrutiny and/or
move toward settlement.
The valuation approaches we use are
determined by the unique facts and
circumstances of every project.
Additionally, our reports substantiate
our assumptions and apply rigorous
analysis to the value determination.
The cost of capital developed in our
reports is determined by the best
methodologies. Our
discounts/premiums reflect the most
up-to-date techniques, research, and
analysis to buttress our conclusions.
They are not just numbers in our
reports.
The income approaches that we utilize
range from the "simple" to the most
complex methodologies depending on the
situation. They include:
- Capitalization of earnings
- Traditional
discounted cash flow
(DCF)
- Probability weighted
scenario analysis / PWERM
- Real options
- Monte Carlo simulations
- Black-Scholes-Merton
- Lattice models
Our private company
transaction analyses utilize multiple
transaction databases to ensure we are
reviewing the most comprehensive list of
past transactions available. These
databases include:
- Mergerstat
- IRS
- IBA
- BizComps
- Pratt Stats
- MidMarket Comps
We
do not believe that one size fits all.
We develop supportable conclusions
driven by robust, substantiated
analysis.
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