Process of evaluating a business precedes any business sale and purchase decision. Business valuation gives a relatively objective starting value to negotiate any sale/purchase deal, however, different prospective buyers may assess different values depending on circumstances of each and the consideration ultimately paid depends on negotiation. In addition to sale or purchase of business, there can be various reasons a business may need it to be valued such as for arranging financing or adding a shareholder.
Business Valuation Techniques
There are various valuation methods for small businesses and the choice varies in different scenarios. The commonly used methods are below:
• Discounted Cash Flow.
• Return on Investment.
• Market Based Valuation.
• Assets Based Valuation.
Valuation experts at VA, have assisted many clients with transaction advisory services. With our Accounting, Due Diligence and Business Valuation expertise, we can arrive at best estimate of worth of the business under consideration.