About Edward Blaugrund

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So far Edward Blaugrund has created 6 blog entries.

When are transactions at fair market value?

By | 2018-03-11T20:31:39+00:00 March 8th, 2018|Business Appraisal|

When determining the fair market value of a business, an appraiser may consider using the private company transaction method. Pricing multiples can be derived from this method, which is based on actual consummated transactions in privately-held stock. Do these transactions represent fair market value? Fair market value (“FMV”) is defined in The International Glossary of [...]

Does a company’s sale price reflect true fair market value?

By | 2018-03-11T20:34:11+00:00 October 25th, 2017|Business Appraisal|

An appraiser seeking to determine a company’s fair market value may choose to use a market approach called the private company transaction method.  This method is based on actual transactions in privately-held stock. It is from these transactions any number of pricing multiples can be derived. Buyers, sellers and investors may ask, however, if the [...]

Comparability Considerations When Using a Market-Based Methodology

By | 2017-11-21T14:27:05+00:00 June 13th, 2017|Business Appraisal|

Revenue Ruling 59-60 supports the market approach to value. One of the market-based methodologies, the private company transaction method, looks at transactions in privately-held stock to derive a pricing mechanisms to value a particular company. The key to this method, and to the market approach in general, is comparability. The business appraiser will attempt to [...]

Restaurant Profitability and Prime Costs – Ready for “Prime” Time?

By | 2017-11-12T08:48:16+00:00 March 15th, 2017|Business Management|

Restaurant profitability and success can be traced to various factors. These factors can include: location, demographics, and concept.  Another key factor to consider is the restaurant’s prime costs. Prime Costs and Restaurant Profitability What are prime costs?  It is the total cost of food, beverage and labor. The food and beverage costs will typically be [...]

Importance of Management Interview and Site Visit

By | 2017-01-19T16:39:01+00:00 January 4th, 2017|Blog, Business Appraisal|

When preparing a business appraisal for a business, financial statements, tax returns, leases and operating agreements are often reviewed and utilized.  Such information is useful in deriving an opinion of value, but often only provides a narrow and incomplete picture of the business.  As most business owners will tell you, there is more to their [...]