There are three approaches to valuing a business: the cost, market and income approaches. In this article, we focus on the market approach, which the International Valuation Glossary — Business Valuation defines as: A general way of estimating a value of an asset, business or investment by using one or more methods that compare the subject to other assets,…
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Working Capital: A Potential Valuation Sleeper
Working capital is sometimes overlooked in determining the value of a business. But it can have a material effect on value, so it’s important to remember. A business’s working capital equals the difference between its current assets and current liabilities. When the value of a business is determined under either the income or the market approach,…
IRS Delays $600 Form 1099-K Reporting Threshold
Businesses and individuals concerned about the confusing 1099-K reporting requirements can breathe a sigh of relief: On November 21, 2023, the IRS announced that the deadline for the new $600 reporting threshold won’t go into effect for the 2023 tax year — and it’s expected to increase the threshold less than expected for 2024. Here’s what…