Valuations reside in a matrix of methods to calculate value paired with the reasons for calculating a value all of which revolve around different points in time. Different reasons may dictate different methods and different methods may not be appropriate for different reasons.
Valuations occur in a variety of circumstances including:
a merger or acquisition (buying and selling a business)
seeking funding for a business (in various stages of funding for start-ups through maturity)
establishing partner or founder ownership percentages
adding a new partner, founder, or shareholder
when partnerships are dissolving (business partners or marriage partners)
for tax purposes
in civil litigation when a loss of revenue or total loss of the business occurs (lost profits, business interruption claims, misappropriation of trade secrets, etc.)
Each of these circumstances contributes to the selection of an appropriate method, each of which is based on some assumptions about the business, its current operations, and the expectation of continued operations. In valuation, the word assumption has a special meaning; it means the input into a financial model and these assumptions, ideally, are based on supported facts and analysis. It does not have the casual meaning of something derived from an unknown basis.
YBR has a unique pool of expertise to objectively value blockchain based companies, cryptocurrency loss, and oil & gas ventures. We have proprietary risk models and track significant amounts of industry data; our risk analysis in these industries is unrivaled. All of our work is governed by the professional standards and ethics for valuators and analysts as set forth by the National Association of Certified Valuators and Analysts (NACVA) and the professional standards and ethics set forth by the Association of Certified Fraud Examiners (ACFE).