by Greg Caruso | Oct 27, 2021 | Business Valuation Basics, SBA Business Valuation and Appraisal
Valuing small business using financial statement evaluation and ratio analysis (quantitative analysis) can be difficult because companies do not tend to follow industry or GAAP standards. Even when cash flows are correct, other financial information may not compare...
by Greg Caruso | Jun 30, 2020 | Business Valuation Basics
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...