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Chapter 4 - Why Learn Valuation Essentials


IACAM has created an essential list illustrating the core concepts of public and private business valuation. These key principles can be found in the free, online-version of The Executive's Guide to Business Valuation by securities and business valuation expert Justin Kuczmarski, MBA, CPA, CVA, CIRA, ABV. 

To view this free IACAM executive guide, please click the blue link above.

The following is an excerpt from Chapter 4, Why Learn Valuation Essentials

Reason 1 to Learn Valuation - Track Value for Financial Planning

Chapter  1  noted  how  approximately  half  of  all  private  businesses  fail  to  transfer onto  the  next  generation.  This  fact  alone  should  drive  advisors  and  owners  to periodically track business value. 

Reason 2 to Learn Valuation - Valuation is an Art and not a Science

The  need  to  understand  business  valuation  also  derives  from  the  subjectivity  of  any appraisal. The appraisal  process,  whether  for  a  business,  real  estate,  or  a piece  of equipment,  is an  art  and  not  a  science.  Accordingly,  irrespective  of  the  financial valuator‘s  experience,  credentials,  or educational  background,  it  is  wise  for  all interested parties to learn how to self-critique an independent valuation. 

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