Latest news with #businessvaluation
Associated Press
6 hours ago
- Business
- Associated Press
RSI & Associates, Inc. Announces Limited Use of Artificial Intelligence (AI) in Business Valuations
CORPUS CHRISTI, Texas, June 10, 2025 (SEND2PRESS NEWSWIRE) — RSI & Associates, Inc., a leading provider of business valuation, feasibility studies and consulting services, today announced a policy of limited and careful application of Artificial Intelligence (AI) in the preparation and analysis of business valuations. This decision is driven by the firm's commitment to maintaining the highest standards of accuracy, reliability, and ethical conduct in its valuation practice, particularly in light of current legal, regulatory, and ethical uncertainties surrounding the use of AI in financial analysis. While recognizing the potential of AI to enhance certain aspects of business valuation, RSI & Associates acknowledges the inherent risks and limitations associated with AI's current state of development. These include concerns about: RSI & Associates emphasizes that the core of its business valuation methodology will continue to rely on the expertise and professional judgment of its accredited valuation analysts. These professionals possess the critical thinking skills and industry knowledge necessary to interpret complex data, identify nuanced value drivers, and provide well-supported, defensible valuation opinions. This human element represents the 'Art' aspect of Business Valuations. According to Gerald W. Brown, Sr, President and Senior Business Appraiser at RSI & Associates, 'Accurate and reliable valuations depend on the expertise of the appraiser, as the integrity of the valuations must be a priority. Valuations, whether of a company's stock or from an asset sale perspective, rely on both 'science' and 'art.' AI can certainly assist with the scientific aspects by processing large datasets and applying algorithms. However, it cannot replace the 'Art' demonstrated through human judgment, stakeholder interaction, subjective assessment and qualitative analysis, which are all crucial for a defensible outcome of a certified valuation.' About RSI: Founded in 1993, RSI & Associates, Inc. has provided business valuation, feasibility studies, exit planning and consulting services for over 30 years. RSI & Associates serves clients across the United States, in diverse industries, offering comprehensive and objective valuation opinions for a wide range of purposes. RSI & Associates, Inc. is committed to maintaining the highest standards of integrity, professionalism, and client service in every engagement. Learn more at: LOGO link for media: NEWS SOURCE: RSI & Associates Inc. Keywords: Consulting and Coaching, business valuation, feasibility studies and consulting services, AI, Artificial Intelligence, SBA Loans, USDA Loans, Feasibility Stud, CORPUS CHRISTI, Texas This press release was issued on behalf of the news source (RSI & Associates Inc.) who is solely responsibile for its accuracy, by Send2Press® Newswire. Information is believed accurate but not guaranteed. Story ID: S2P126829 APNF0325A To view the original version, visit: © 2025 Send2Press® Newswire, a press release distribution service, Calif., USA. RIGHTS GRANTED FOR REPRODUCTION IN WHOLE OR IN PART BY ANY LEGITIMATE MEDIA OUTLET - SUCH AS NEWSPAPER, BROADCAST OR TRADE PERIODICAL. MAY NOT BE USED ON ANY NON-MEDIA WEBSITE PROMOTING PR OR MARKETING SERVICES OR CONTENT DEVELOPMENT. Disclaimer: This press release content was not created by nor issued by the Associated Press (AP). Content below is unrelated to this news story.
Forbes
21-05-2025
- Business
- Forbes
How Buyer's Risk Impacts Your Business Valuation
Business acquirers are buying a future stream of income. And their most important question is: how ... More stable is that stream? Every business owner wants to build a valuable business. But when you're thinking about value and only considering revenue or profit, you're missing the real metric business buyers care about: buyer's risk. Most owners looking to sell their business obsess over valuations. "Can I get four times profit? Maybe six times if I wait a year?" But valuations and these so called 'multiples' are just a reflection of how safe your business looks to someone who's considering buying your business. Multiples aren't magical. They're mathematical and rooted in a buyer's gut feeling about how risky it is to own what you've built. Buyers aren't just purchasing your brand, your clients, or your revenue. They're buying a future stream of income. And their most important question is: how stable is that stream? If you want to sell your business for life-changing money, you need to see your company through a buyer's eyes. That means understanding what risk looks like to them and how it silently subtracts from your valuation. Imagine someone is about to spend one million dollars on your business. That money isn't just a payment, it's an investment to them. And just like any investor, they're running a mental checklist: Can this business run without the current owner? Are these profits predictable? What are the chances something blows up in year one? The higher the perceived risk, the faster they want to earn their money back. And the faster they want their return, the lower they'll offer. That's how risk works: it drives down your business valuation, even when your profits look solid. In other words, two businesses with the same revenue and margin can sell for wildly different prices—purely based on how risky they appear to buyers. Most business buyers use a mix of instinct and data to judge risk. But over the years, a few patterns have emerged. Here are three of the biggest red flags that drag your valuation down: Let's say your business earns $300,000 in annual profit. A buyer interested in a 25% return would pay around four times your profit—a $1.2 million valuation. But if they see risk and demand a 33% return, that multiple drops to three times profit, bringing your valuation down to $900,000. Same business. Different perception. $300,000 difference. This isn't just theoretical. It's how deals happen every day. Financial buyers have target returns, and they back into valuations based on how confident they feel in achieving them. Your job is to make them feel more confident. Lower the perceived risk, and you increase the price. Take a creative agency doing $1.2 million in annual revenue with a 35% profit margin. On paper, that's a $420,000 profit. But how that profit is earned makes all the difference. In scenario A, the founder manages every client, two clients drive 60% of revenue, and there are no documented systems. A buyer might value that at 2.5 times profit, around $1.05 million. Now, imagine the same agency twelve months later. An account manager handles relationships, no single client drives more than 20% of revenue, and systems are documented. The buyer's perceived risk drops, and the multiple climbs to four times profit, around $1.68 million. Same revenue. Same profit. $630,000 increase in valuation—just by reducing risk. You don't need to be perfect to sell your business. You just need to be significantly less risky than the average seller in your category. Here are key areas where buyers look for stability: Most business owners underestimate how much they can influence perceived risk. But once you understand how buyers think, the game changes. You can proactively shape the story they see. You can reassign responsibilities to your team. You can document your sales funnel. You can renegotiate contracts to add stability. These aren't massive overhauls. They're small shifts that build trust. And trust is what drives up your business value. Buyers use numbers, but they decide based on emotion. Logic tells them your EBITDA is solid. But emotion says, 'Can I sleep at night owning this?' When your business feels stable, structured, and scalable, buyers relax. They pay more. They bid faster. And you walk away with a better deal. So the next time you think about valuation, don't start with the multiple. Start with the buyer's risk. Then reduce it. That's how you raise your price and exit on your terms.
Forbes
20-05-2025
- Business
- Forbes
Forbes Launches Inaugural Top CPAs In Valuation
F a recognition designed to highlight this year's most exceptional, practicing CPAs providing valuation services throughout America. Our aim is to identify the practicing CPAs who have demonstrated remarkable expertise and achieved the Accredited in Business Valuation (ABV) or Certified Valuation Analyst (CVA) credential in the valuation specialization. We are particularly interested in CPAs who have made their mark in their career, for their profession and serving the public interest. To do so, Forbes has developed a thorough methodology for identifying, vetting, and selecting candidates. As an integral part of this process, we are seeking recommendations from the wider business community. If you know, or are aware of, a CPA who serves the public providing valuation services within a CPA firm and demonstrates both excellence and a consistent track record of success, we invite you to nominate them for the Top CPAs in Valuation recognition. Please submit your nominations through the provided link by June 30, 2025. Our editorial team will carefully review each nominee. Selected CPAs will be contacted with requests for additional information as they advance in the selection process. NOMINATION FORM Please note that this list is entirely merit-based and qualitative - there is no fee to participate and candidates cannot pay to be listed. Any questions about submissions or the upcoming list should be directed to TopCPAs@
