The Body & Soul of Business Valuation, Part I: Infrastructure of Valuation

A satisfactory result for you client often hinges on a proper valuation. As an attorney working with and against valuation experts, you must have a good working knowledge of how accurate valuations are conducted and what the best practices are.

In this series, author and valuations expert Jay Abrams gives attorneys a primer in valuation methods. Part I, which covers the infrastructure of valuation, consists of the following topics:

1. Premise of Value - the assumptions underlying the valuation.
2. Standards of Value — current and ancient standards of value.
3. Valuation Approaches - The three valuation approaches in business valuation are the asset approach, the income approach, and the market approach.
4. Digital Qualities - various digital (or binary) qualities that relate components of value and standards of value to human psychology
5. Elements of an Engagement Letter
6. Regression Analysis— an important, all-pervasive statistical tool that sophisticated appraisers can use in many phases of the valuation process.