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“My practice is doing great! We are growing 15%!” A dermatologist with a growing clientele told me happily. She was contemplating a sale in a few years. The physician was not wrong. Revenue exceeded $10 Million and was growing. Profit margin was 20 percent. She had a tenured team and a loyal client base. Her business had over 500 Google ratings averaging 4.8. But that was not the full story. When I dug into the practice’s financials, I found their collections rate (the percen

Most owners think valuation happens when the business goes to market. However, valuation is earned years before the sale. Buyers do not pay for potential. They pay for demonstrated performance, lower risk, and confidence that future cash flows will materialize. From a valuation perspective, enterprise value is not simply a function of earnings—it is also a function of risk. Two companies with identical EBITDA can receive dramatically different valuations because one appears s

One of the most common misconceptions about business valuation is that a company has a single, objectively correct value. It does not. The same company may have different values depending on the question being asked. As the NACVA Professional Standards note, the purpose of a valuation must be carefully defined because different purposes often require different assumptions, methodologies, and standards of value. Before selecting a valuation method, an analyst must answer two f