Merger and acquisition (M&A) activity increased significantly in the fourth quarter of 2023, signaling a hot M&A market for 2024. But there are some potential pitfalls for unwary buyers and sellers. Here are some common mistakes and how a business valuator can help ensure your deal goes as planned. Reliance on Valuation Rules-of-Thumb   Some M&A participants…

The discount for lack of marketability (DLOM) is one of the most contentious issues in business valuation. One reason is that the DLOM can lower a business interest’s value by as much as 35% or more. Another reason is that the DLOM varies significantly, depending on the rights and restrictions attached to the business interest. Here’s…

Owners of privately held business might need valuations of their interests for many reasons, including: Some owners may be tempted to hire the valuation professional with the lowest fees. After all, a business valuation is just a formality, isn’t it? Many owners perceive formal appraisals as something required by an outside party — such as the IRS,…