Adjusting Depreciation to Maximize Business Value

The lower the real depreciation, the higher the profit and the higher the value, maximizing your business value.

Actual depreciation is usually higher than the real depreciation applicable to business fixed assets. Replacing actual depreciation with a lower provision for capital replacement usually increases the true profit and therefore your business value.

In this video we explain how adjusting for real depreciation can lead to maximizing your business value.

Posted in Valuations.