The traditional Income Statement Approach classifies costs according to the reason costs were incurred and yields a Profit Calculation for your business as a whole. While this is a good measure for understanding the profitability of your entire business, it is not an effective method for measuring the contribution that individual products make to your company’s bottom line. For this, you need to utilize a Contribution Margin Approach.
The Importance of Fairness Opinions: Valuation Assurance for Buyers and Sellers
A Fairness Opinion can provide important information in a wide variety of financial transactions such as mergers, acquisitions and business privatizations, as well as hostile takeovers and distressed sales. Very succinctly, a Fairness Opinion can be thought of as a second opinion because it addresses the fairness of a proposed equity transaction from a financial perspective, as produced by an independent financial advisor who objectively examines the price, terms and consideration to be received in a given transaction.