An investor in a public company can sell their shares instantaneously. In comparison it usually takes time for an investor in a private company to find a buyer and exchange contracts. According to the Pepperdine 2023 Private Capital Market report, business brokers observe it takes an average of nine months…

Valuing a start-up or young company can be problematic. Key problems can include: little or no financial history dependency on key people to make it a success requires private capital to survive making little or no revenue and likely loss making Another key issue is the likelihood of failure. According…

Compared to a hypothetical diversified investor in a public company, a hypothetical controlling investor in a private business can potentially suffer from two key disadvantages: reduced opportunity to diversify away unsystematic risk; the business may be their main investment a lack of liquidity; an investor in a public company can…

There appears increasing financial interest in the veterinary industry with publicly listed and private equity-backed companies actively acquiring clinics. Income growth in the sector has been strong and practices are often viewed as reliable and stable. This article considers some of the issues relating to the valuation and pricing of…

Compared to a hypothetical diversified investor in a public company, a hypothetical investor in a private business can potentially suffer from two key disadvantages: reduced opportunity to diversify away unsystematic risk; the business may be their main investment a lack of liquidity; an investor in a public company can sell…

The market share price of a listed public company represents the portfolio interest price. That is to say, the price an investor is prepared to buy or sell a small parcel of shares, typically less than 5% of the company. In takeovers of listed companies, an acquirer is sometimes observed…

The value of a privately-held business maybe calculated using a discounted cash flow method or a capitalisation of earnings method; both methods require an estimate of the cost of capital. The cost of capital can be estimated using pricing from public markets. Shares, however, in a private business are not…

Forensic /fəˈrɛnsɪk/ relating to courts of law, from Latin forensis ‘in open court, public’, A forensic accountant provides accounting services in disputes; they hopefully help to resolve financial issues! Skills of a forensic accountant The forensic accountant needs specialised technical knowledge derived from training, study and experience, for example, business…

Lost profit is generally defined as the revenue the injured party would have made, but for the business interrupting event, less the costs saved. According to Niamh Brennan and John Hennessy (1) the lost profit computation can be broken into the following steps: 1. define the damage period 2. estimate…