Valuing small businesses: emerging trends

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Running Time: 7:04

Date: 01/11/2014

The business valuation process is now under much more scrutiny than in the past, which has many implications for you and your clients.

Dave Pearson of Leadenhall Corporate Advisory  says that heightened economic volatility with interest rates, foreign exchange rates, and commodity prices means that methodologies focused on historical results may not be reflective of the future. 

Dave says there’s currently an increased use of methodologies that focus on earnings and profitability, and cash flow, as opposed to revenue multiples and other rule of thumb metrics in the valuation process.