American actor Lee Marvin once said: “As soon as people see my face on a movie screen, they knew two things. First, I’m not going to get the girl, and second, I’ll get a cheap funeral before the picture is over.” 1 Tip: Contact Information A letter of instructions also might include contact information for…

If you are selling a business, the buyer may want to pay part of the price through an earnout provision. This is a contractual arrangement in which the seller receives additional payment in the future if certain financial goals are met. In other words, part of the price is contingent on the performance of the…

When appraisers select from the menu of appraisal techniques, the income approach is a popular choice. This technique derives value by converting anticipated economic benefits into their net present value. Long-term sustainable growth is a key ingredient. Capitalization of Earnings Method Here’s the “recipe” for valuing a business under the income approach, when the subject company’s earnings…