by Greg Caruso | Jun 30, 2020 | 6 - The Market Method of Business Valuation, Business Valuation
Market Approaches in business valuation compare market sales to the company being valued. This is done by estimating a ratio of sales price to cash flow called a multiple or multiplier (i.e. $300 sales price / $100 of cash flow = a multiplier of 3.) Then the...
by Greg Caruso | Jun 24, 2020 | 7 - Asset Approaches, Business Valuation
Asset Approaches in business valuation compares the value of the assets less the value of the liabilities (debts) of the company and the difference is the company value. The formula is Assets – Liabilities = Value. For small businesses this tends to be limited to the...
