The Accredited in Business Valuation (ABV) is a designation awarded by the American Institute of Certified Public Accountants (AICPA) to Certified Public Accountants (CPAs) who meet specific qualifications. The holders of this designation are known for their expertise in business valuation and are often referred to as CPA/ABV.
An appraiser is a person qualified to estimate the value of a business, real property, or personal property. The profession requires knowledge, expertise, and, often, certification.
The purchase of assets or other goods for substantially less than the fair market value. A bargain purchase can be made when the vendor is in liquidation or is otherwise financially distressed.
Business value encompasses the total worth of a business, considering both tangible and intangible assets. It represents the value above the mere physical assets, including elements such as goodwill and going-concern value.
Economic exposure, also known as operating exposure, encompasses the potential impact of changes in macroeconomic variables and exchange rates on the value of a business engaged in international trade.
Understanding the Importance of Going-Concern Value in Assessing a Company's Operating Worth.
Goodwill is an intangible asset reflecting a business's customer connections, reputation, and similar factors. It is the difference between the value of the separable net assets of a business and the total value of the business.
Identifiable assets and liabilities, also known as separable assets and liabilities, are those parts of a business that can be disposed of separately without having to dispose of the entire business. They play a crucial role in financial accounting and business valuation.
Inherent goodwill refers to the non-quantifiable value a business possesses, often through reputation, customer loyalty, and other intangible factors, that is organically developed over time.
Intangible value represents non-physical assets that have a significant impact on an entity's worth, such as goodwill, brand recognition, and intellectual properties like trademarks and patents.
The International Valuation Standards Council (IVSC) is an independent, non-profit organization that sets global standards for the valuation profession.
Invisible assets, often referred to as intangible assets, are non-physical assets that add value to a company such as intellectual property, brand reputation, and customer relationships.
Liquidating value refers to the projected price for an asset of a company that is going out of business, such as a real estate holding or office equipment. This value is often distinguished from the going-concern value, which may be higher due to factors such as organization value or goodwill.
The market approach, also known as the sales comparison approach, is a method used to value an asset based on the selling price of similar assets in the marketplace. This valuation technique is widely used in real estate and business valuation.
A global professional association that supports the business valuation, litigation consulting, and fraud deterrence disciplines within the CPA and professional business advisory communities.
Net Realizable Value (NRV) is a key metric in inventory accounting that measures the estimated amount a business expects to receive from the sale of inventory, minus any estimated costs to complete the sale.
Net Realizable Value (NRV) is the net amount that an entity expects to realize from the sale of an asset after deducting any costs involved in its sale or disposal.
Net residual value is an important assessment in accounting, business valuation, and asset management, representing the final estimated value of an asset after accounting for depreciation and other expenses.
The present value (PV) of an annuity is the current value of a series of future payments, discounted at a specific interest rate over a specific number of periods. It is a fundamental concept in finance and accounting, allowing individuals and businesses to evaluate the worth of future payments in today's terms.
Terminal Value (TV) is an essential financial metric used to estimate the value of a business beyond the forecast period in a discounted cash flow (DCF) analysis.
Tobin's Q Ratio, devised by US economic analyst James Tobin, measures the impact of intangible assets on business value by comparing the market value of a business to the replacement cost of its assets.
Identifying and managing value drivers is crucial for forecasting future cash flows and ensuring the long-term viability of a business.
