Many startup ventures have never generated positive cash flow — or even revenue. How can a valuation analyst value a startup business when it has no track record? Without historical performance to rely on, valuators often turn to the entrepreneurs’ forecasts. However, no one can see into the future. So, prospective financial statements can be subjective…

Many stocks — such as Walmart, Dell and Google — trade on the New York Stock Exchange or another public stock exchange. Shares in public companies can be converted to cash within a few days. But privately-held business investors don’t have the same luxury. Their investments can take months or even years to sell. Discounts for lack of…

By what “standard of value” should a business be appraised? That may sound like a peculiar question at first blush, but it has a significant meaning when determining the value of a private business interest. Most often, people who are unfamiliar with the nuances of business valuation recognize the term “fair market value” (FMV). However, there…