Valuation Blog Archive

  Yes, Shareholder Control Does Affect Business Valuation.   Investors need control; they will often pay less for a business interest where there is a lack of control over key decisions. The old saying “the whole is greater than the sum of its parts,” rings true for business valuations. This article explains how shareholder control...

Levels of Equity Value: The Logic Of Discounts and Premiums   A business is conventionally valued by its ability to generate future income; the buyer then uses the latest of this value to calculate the present worth of the business. Though in common day practice, the process is theoretically viable but, in reality, it is...

What are Valuation Premiums and Discounts?   IFRS 13 requires an entity to select inputs in a fair value measurement that are consistent with the characteristics of the asset or liability that market participants would take account of. Premiums and discounts are usually added to accommodate the effects of other factors related to the ownership...

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