Determining the Existence of Personal Goodwill – Part II

Determining the Existence of Personal Goodwill – Part II

In Part I, we discussed that personal goodwill is commonly valued separately in divorce cases when state statute treats personal goodwill as a non-marital asset.  Personal goodwill is also valued separately for tax purposes in an asset sale of a C Corporation.  There...
Cost of Capital – Executive Summary

Cost of Capital – Executive Summary

One of the most important parts of the valuation formula is Cost of Capital.  Whether you are selling your business, buying a business, or defending the value of your equity interest for tax, ESOP or litigation purposes, the correct value requires the correct...
Determining the Existence of Personal Goodwill

Determining the Existence of Personal Goodwill

It is common to value Personal Goodwill separately in divorce cases when State statute treats personal goodwill as a non-marital asset. Occasionally, but not often enough, personal goodwill is separately valued for tax purposes when the assets of a C Corporation are...
EBT or EBITDA – Which Measure is Best for Normalization?

EBT or EBITDA – Which Measure is Best for Normalization?

Traditional business valuation fundamentals, techniques and theory, as currently taught to analysts in NACVA’s Consultants’ Training Institute (CTI), indicate that earnings before taxes (EBT) is the starting point for normalizing historical earnings under the...