Business Valuation Guide

Business valuation is the process of determining the economic value of a business. This can be done for a variety of reasons, such as to help business owners make decisions about selling or expanding their business. Valuations can also be helpful in estate planning and divorce proceedings.

There are a number of different methods that can be used to value a business. The most common are the market approach, the income approach and the asset approach.

The market approach looks at what similar businesses have sold for in the past. This can be a helpful way to value a business if there is a large enough pool of comparable sales to draw from.

The income approach looks at how much money the business is expected to generate in the future. This approach is often used when valuing businesses that are not yet profitable but have high growth potential.

The asset approach looks at the value of the business’s assets, such as property, equipment and inventory. This method can be used when a business does not have a lot of intangible assets, such as a strong brand or customer base.

Business valuation is a complex process, and there are a number of factors that can impact the value of a business. As such, it is important to seek out the help of a professional business appraiser when attempting to value a business.