Podcast Archives - Valuation Ultimate

In this episode I interview Ben Towne from Towne Advisory about his career progression as a business valuer. We discuss some technical issues such as terminal values, valuing start-ups, weighted average cost of capital and much more. Ben also explains how he uses outsourcing to improve his efficiencies and how he built enough scale to offer those resources to other business valuers.

You can find out more about Ben’s valuation practice at www.towneadvisory.com.

The business valuation podcast by business valuers for business valuers and other like-minded professionals. Let’s build a community of enthusiastic and kind business valuation practitioners to share best-practice valuation methodologies, strategies, data sources and tools. Hosted by Trevor Monaghan, a forensic accountant and business valuation specialist. Don’t be shy, subscribe and join the business valuation community as we pull back the curtain and discuss what best-practice looks like.

The post #6 – Ben Towne on Business Valuation Efficiencies appeared first on Valuation Ultimate.

In this episode I interview Rod Burkert, an experienced business valuation advisor who now advises other valuation firms on building the practice they want.

In one way, shape, or form Rod has been performing business valuations since the late 1980s. In July 2000, Rod started Burkert Valuation Advisors in Philadelphia where he ran a “traditional” valuation practice for 10 years. From March 2010 to March 2022 (12 years!), Rod traveled full-time in an RV throughout the US and Canada with his wife and dogs. When he saw the possibilities of a location-independent practice, he started rbCOACHING to help others transform their BVFLS firms. Today, Rod is settled in Bisbee, AZ (for now!) and focuses solely on practice building coaching. I ask Rod what made him want to leave his valuation practice behind and spend his time helping other valuers to build their practices.

You can find out more about Rod and his coaching program at www.rodburkert.com.

The business valuation podcast by business valuers for business valuers and other like-minded professionals. Let’s build a community of enthusiastic and kind business valuation practitioners to share best-practice valuation methodologies, strategies, data sources and tools. Hosted by Trevor Monaghan, a forensic accountant and business valuation specialist. Don’t be shy, subscribe and join the business valuation community as we pull back the curtain and discuss what best-practice looks like.

The post #5 – Improving your Valuation Practice with Rod Burkert appeared first on Valuation Ultimate.

Enterprise Value is a very specific concept that is often misunderstood and used too generally by inexperienced business valuers.

In this episode we pull back the curtain and discuss what Enterprise Value actual is, where it comes from, how to calculate it and how it is very different to the values obtained from most market based approaches. We discuss how to find the goodwill and other unidentified intangibles from starting with the Enterprise Value and carefully calculating the Ordinary Net Operating Assets used in the core business. From there we talk about getting to Equity Value two different ways.

We also cover calculating goodwill using a comparable transaction approach and why the numerator in a comparable multiple is not usually Enterprise Value but a modified version or even simply goodwill directly. In a market approach all that matters is the actual numerator and the actual denominator in the dataset and you have to match them exactly to avoid drifting away from the market evidence and ending up in no-man’s land.

The business valuation podcast by business valuers for business valuers and other like-minded professionals. Let’s build a community of enthusiastic and kind business valuation practitioners to share best-practice valuation methodologies, strategies, data sources and tools. Hosted by Trevor Monaghan, a forensic accountant and business valuation specialist. Don’t be shy, subscribe and join the business valuation community as we pull back the curtain and discuss what best-practice looks like.

The post #4 – Enterprise Value vs Goodwill vs Equity Value – Common Mistakes appeared first on Valuation Ultimate.

The most common question I get asked as a business valuer and a valuation software CEO is “What multiple should I use to value the business?”

In this episode we pull back the curtain and discuss where multiples come from and why the context matters. Different multiples have different purposes. Multiples used in a capitalised earnings method are fundamentally different from multiples derived in a comparable transaction method. In this episode we go through the differences in detail so you can understand when and how to use certain multiples when valuing a business.  The detail matters and that’s what we cover.

We cover deriving multiples from the weighted average cost of capital using the capital asset pricing model and the Gordon growth model. We also explain how to properly implement market multiples such as MVIC/Revenue and MVIC/EBITDA by carefully understanding the numerator and the denominator so you are making proper comparisons.

The business valuation podcast by business valuers for business valuers and other like-minded professionals. Let’s build a community of enthusiastic and kind business valuation practitioners to share best-practice valuation methodologies, strategies, data sources and tools. Hosted by Trevor Monaghan, a forensic accountant and business valuation specialist. Don’t be shy, subscribe and join the business valuation community as we pull back the curtain and discuss what best-practice looks like.

The post #3 – What Multiple should I use for a Business Valuation? appeared first on Valuation Ultimate.

Should you use EBIT, EBITDA, Cash Flow or something else to value a business?

In this episode we pull back the curtain and discuss the reasons behind using different levels of profit or cash flow depending on the nature of your multiple. Are you using an income approach (CFME or DCF) or a market approach (Guideline Public Company or Comparable Transactions)? There are different multiples for different methods and situations. You need to know what the multiple represents and where the numerator and denominator actually come from. There are different multiples for different situations and your denominator (EBIT, EBITDA, Cash Flow or something else) just needs to match the denominator in the multiple. The result you get is simply the numerator in the multiple. Sounds simple enough but you need to be clear on how it all works under the hood.

The business valuation podcast by business valuers for business valuers and other like-minded professionals. Let’s build a community of enthusiastic and kind business valuation practitioners to share best-practice valuation methodologies, strategies, data sources and tools. Hosted by Trevor Monaghan, a forensic accountant and business valuation specialist. Don’t be shy, subscribe and join the business valuation community as we pull back the curtain and discuss what best-practice looks like.

The post #2 – EBIT, EBITDA or Cash Flow for Business Valuations appeared first on Valuation Ultimate.

The business valuation podcast by business valuers for business valuers and other like-minded professionals. Let’s build a community of enthusiastic and kind business valuation practitioners to share best-practice valuation methodologies, strategies, data sources and tools. Hosted by Trevor Monaghan, a forensic accountant and business valuation specialist. Don’t be shy, subscribe and join the business valuation community as we pull back the curtain and discuss what best-practice looks like.

The post #1 – Business Valuation Podcast appeared first on Valuation Ultimate.