Author: Ryan OConnell

Think about the average return an investor’s capital earns in the stock market. What is a good return on an investment? Is it 7% or 10% or another number?  If a business owner has sales of $1 million and earns 5% ($50,000) and a business valuation can contribute to business improvements and add another 2% [...]

What business are you in? Most companies can answer this quickly and they readily know their six-digit NAICS code (North American Industry Classification System). Others might have to think about it. How do we define what business we are in?  Most companies decide their industry classification based on what they sell or provide to customers [...]

All valuations should meet the same standards no matter the valuation fee charged. All valuations should be conducted by a qualified appraiser, should conform with generally accepted appraisal standards, be consistent with the substance and principles of the Uniform Standards of Professional Appraisal Practice (USPAP), and the appraiser should have the experience and  background to […]

The fair market business value is an estimate of the economic value of an owner’s interest in a business, based on an ‘arm’s length’ transaction where a buyer and seller, freely agree upon a value with access to all information. Three valuation approaches can estimate a business’ fair market value: the income approach which views [...]