Discussion Thread: A Unique Business Valuation Topic/Issue

Introduction

Overview

There are many reasons for obtaining a business valuation other than for selling. For example, in the event of divorce, a value may need to be assigned for the couple to equitably divide their assets. Other common valuation reasons are shareholder disputes, employee stock ownership plans, and estate taxes. 

Learning Outcomes

Upon successful completion of this module, you will be able to:

• Identify various valuation issues.
• Incorporate biblical principles to valuation issues. 
• Apply issues to real-world companies.

 

• Read: Hitchner: Chapters 17 – 23
• PageWatch: Valuation Issues

https://canvas.liberty.edu/courses/934965/pages/watch-valuation-issues?module_item_id=101647683

 

Discussion Thread: A Unique Business Valuation Topic/Issue

 

As you have most likely discovered in this class, although the theory of valuing a business is fairly straightforward, the actual process of assigning a value to an enterprise can be very complex. The simple fact is that the value of a business is often left to the mercy of the person conducting the evaluation. In part, this complexity is due to the fact that business evaluation is subjective. In addition, there is no guarantee that the data used to assess the current position of the firm is correct and accurate. And forecasting the future is like trying to read a crystal ball. There is no guarantee that the most likely path is the route that will be traveled in the future.

As though these issues are not already challenging, Chapters 19 through 31 in the Hitchner text discuss important, though less commonly considered, valuation issues. For this assignment, pick a specific topic from any one of these chapters that you find to be particularly interesting. Find at least two other articles that discuss the same topic and write a summary of this issue. Items to discuss are the topic, why it is important to professional valuation experts, and how the topic/issue impacts or should be treated when doing a business valuation.

DISCUSSION ASSIGNMENT INSTRUCTIONS

You are required to submit a thread of at least 450 words in response to the provided prompt for each

forum. For each thread, you must support your assertions with at least two (2)

scholarly/professional sources (note that Investopedia and Wikipedia are not

scholarly/professional sources). Your sources MUST be cited at the end of your post using

proper APA format.

In addition to your original thread, you must reply to at least two (2) classmates’ threads. Each

reply must be at least 250 words. Do not just say “good job” or “I learned something from your

post.” Replies are not a cheering exercise. Instead, your replies must be substantial, reflecting

what you learned from reading the post, offering an extension, or correcting a mistake. Use what

you learned in researching for your post (or knowledge gained from other classes or personal

experience) to either supplement or critique the post you are writing about. You do not have to

include any references for your replies.