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VERITICONSULTINGLLC
Top Three
Business Valuation FAQ’s
TRUTHBEHINDNUMBERS.COM
In-DepthExperienceandUnparalleledExpertise
QUESTION #1
While there are certain multiples of net income or
discretionary cash flow that can be used for business entit...
QUESTION #2
TRUTHBEHINDNUMBERS.COM
In-DepthExperienceandUnparalleledExpertise
What methods are used to value
a business?
D...
QUESTION #3
TRUTHBEHINDNUMBERS.COM
In-DepthExperienceandUnparalleledExpertise
Why are certain “discounts” applied
to a bus...
THANK YOU
THANKSFOR REVIEWINGTHIS PRESENTATION
PRESENTATION BY: VERITI CONSULTING LLC
8111E. THOMASRD. #120SCOTTSDALE, ARI...
EXPERTTEAM
TRUTHBEHINDNUMBERS.COM
In-DepthExperienceandUnparalleledExpertise
Liz Monty,
CPA/ABV, CFF, CFE, CVA, DABFA
Mana...
CONTACT
VERITICONSULTING LLC
CONNECTWITHEXPERIENCED FRAUD,
FORENSIC& ECONOMICDAMAGES EXPERTS
CALL:877-520-1280
EMAIL:INFO@...
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Top Three Business Valuation FAQ's

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Question #1
Why can’t a “rule of thumb” be used to value a business?
While there are certain multiples of net income or discretionary cash flow that can be used for business entities, in general a rule of thumb does not consider a specific business’s financial characteristics, inherent risks, and ownership attributes.
Question #2
What methods are used to value a business?
Depending on the purpose of the valuation and the type of report required, an asset approach, an income approach, and a market approach may be considered. Often times all three approaches are used and a weighting of each is subjectively applied by the appraiser.
Question #3
Why are certain “discounts” applied to a business valuation?
Depending on the ownership interest being valued, a discount for lack of control (if valuing a minority interest who cannot affect the business operations), a discount for lack of marketability (time needed to sell the interest), or both discounts may be applied to the value.

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Top Three Business Valuation FAQ's

  1. 1. VERITICONSULTINGLLC Top Three Business Valuation FAQ’s TRUTHBEHINDNUMBERS.COM In-DepthExperienceandUnparalleledExpertise
  2. 2. QUESTION #1 While there are certain multiples of net income or discretionary cash flow that can be used for business entities, in general a rule of thumb does not consider a specific business’s financial characteristics, inherent risks, and ownership attributes. TRUTHBEHINDNUMBERS.COM In-DepthExperienceandUnparalleledExpertise Why can’t a “rule of thumb” be used to value a business?
  3. 3. QUESTION #2 TRUTHBEHINDNUMBERS.COM In-DepthExperienceandUnparalleledExpertise What methods are used to value a business? Depending on the purpose of the valuation and the type of report required, an asset approach, an income approach, and a market approach may be considered. Often times all three approaches are used and a weighting of each is subjectively applied by the appraiser.
  4. 4. QUESTION #3 TRUTHBEHINDNUMBERS.COM In-DepthExperienceandUnparalleledExpertise Why are certain “discounts” applied to a business valuation? Depending on the ownership interest being valued, a discount for lack of control (if valuing a minority interest who cannot affect the business operations), a discount for lack of marketability (time needed to sell the interest), or both discounts may be applied to the value.
  5. 5. THANK YOU THANKSFOR REVIEWINGTHIS PRESENTATION PRESENTATION BY: VERITI CONSULTING LLC 8111E. THOMASRD. #120SCOTTSDALE, ARIZONA 85251 TEL: (877)520-1280 • EMAIL: INFO@TRUTHBEHINDNUMBERS.COM WWW.TRUTHBEHINDNUMBERS.COM
  6. 6. EXPERTTEAM TRUTHBEHINDNUMBERS.COM In-DepthExperienceandUnparalleledExpertise Liz Monty, CPA/ABV, CFF, CFE, CVA, DABFA Managing Director John White, MBA, CPA/ABV, CFF, CFE, CBA, CrFA, ASA Managing Director
  7. 7. CONTACT VERITICONSULTING LLC CONNECTWITHEXPERIENCED FRAUD, FORENSIC& ECONOMICDAMAGES EXPERTS CALL:877-520-1280 EMAIL:INFO@TRUTHBEHINDNUMBERS.COM PRESENTATION BY: VERITI CONSULTING LLC 8111E. THOMASRD. #120SCOTTSDALE, ARIZONA 85251 TEL: (877)520-1280 • EMAIL: INFO@TRUTHBEHINDNUMBERS.COM WWW.TRUTHBEHINDNUMBERS.COM

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