Axiom Valuation values U.S.-based businesses and marketable securities. Our valuation analysis incorporates the latest academic, legal, and practical thinking on the most complex valuation issues.

Axiom Valuation uses one or more of these widely accepted methodologies for valuing a privately held business depending upon the purpose of the valuation and the valuation service selected by the user.

All Axiom Valuation services utilize the Discounted Free Cash Flow (DFCF) approach in our patent pending valuation process. Peer-reviewed, academic research evaluating thousands of actual business sales transactions has shown DFCF to be the most consistently accurate methodology for valuing a firm.

On-going Concern

An established company with recurring customers and positive cash flow most of the time is likely to be an on-going concern. The value of this kind of company is generally viewed as dependent upon its future cash flow generating ability. In most cases, the value of the company's future cash flow will be greater than the value of the assets used to generate the cash flow minus the liability of the company.

In contrast, a firm that is not generating positive cash flow over a sustained period of time is generally viewed as having only a liquidation value, that is, the difference between the value of its assets, if sold off at fair market value, and the value of its liabilities. Since the company does not have positive cash flow to value, the valuation analyst must focus on determining the value of its tangible and intangible assets.