Blog

Wednesday, 11 March 2020 18:19

Net Working Capital

Cash flow is king and every business requires cash to operate. For this reason, it's important to understand and manage properly business working capital. Below we will explain what working capital means, what happens if its positive or negative and its overall importance.

Tuesday, 11 February 2020 02:48

Discount for Lack Of Marketability

There is always a debate as to the application of a Discount for Lack of Marketability in business valuation, should it be considered and or applied? which technique is the most appropriate?. Below we will explain what a discount for lack of marketability means, some common techniques and examples.

Tuesday, 21 January 2020 18:08

Discount for Lack Of Control

When performing a business valuation, several discounts should be considered that may need to be applied to a business’s value. Below we will explain what a discount for lack of control means and when an investor, valuer or other users of valuation information, should be aware of it.

Monday, 16 December 2019 19:10

Market Approach Methods

When performing a business valuation, the careful selection and use of the appropriate valuation Approaches is key in forming a defendable opinion of value. Within the three valuation Approaches, there are a range of valuation Methodologies. Below we explain the three most frequently used valuation Methodologies when valuing SMEs under the Market Approach.

Monday, 02 December 2019 18:53

Income Approach Methods

When performing a business valuation, the careful selection and use of the appropriate valuation Approaches is key in forming a defendable opinion of value. Within the three valuation Approaches, there are a range of valuation Methodologies. Below we explain the two most applicable valuation Methodologies when valuing SMEs under the Income Approach.

Monday, 18 November 2019 20:10

Cost Approach Methods

Business valuation professionals typically apply one of these three methods under the Cost Approach when performing a valuation. The usage of each method depends on the specific asset under valuation and availability and relevance of other valuation Approaches and Methodologies. 

Value Drivers could have either a positive or negative impact on the value of your Business, have you considered the importance of these?

The three financial statements allow owners to analyse the financial performance of the business, its cash flows and its financial position. However, all too often the cash flow statement or cash position of the business for SMEs (Small to Medium Enterprises) is forgotten or unknown. 

Friday, 04 October 2019 16:08

Cost of Equity versus Cost of Debt

Businesses need to determine how to make the best use of these funding sources, being debt and equity to create and operate their business. 

Thursday, 19 September 2019 20:00

3 Approaches to Valuing a Business

There are 3 valuation ‘Approaches’. Within each Approach there are several valuation ‘Methodologies’ or ‘Techniques’ you can use. Regardless of whether you are valuing just the assets, firm or equity of a business, one of the 3 Approaches must be used. 

In our examples used below, for simplicity we are only valuing the assets of the firm.  

 

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Andrew Mackson, CFA, ABV

Co-founder

Cameron Braid, MBA

Co-founder

Australia

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