Market Approaches and Market Methods for 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...
Asset Approaches and Asset Methods of 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...
Small Business Valuation 101 – Essential Business Valuation Basics for Calculating Value
Small Business Valuation 101 explains estimating your business value or worth. Business valuation at the rule of thumb level is very simple like the summary shown immediately below. Yet formulating an opinion of value can be endlessly complex. Part of the complexity...
Business Valuation Issues Arising from Coronavirus
Coronavirus, caused by Covid - 19 has raised new issues to consider when preparing business valuations. Many businesses are going to struggle to stay in business to hopefully rebuild business value on the other side of this contagion. A few considerations...