Business valuations

Four of the most commonly used valuation methods to value a business are:

  1. Asset valuation
  2. Capitalised future earnings
  3. Earnings multiple
  4. Comparable sales

To the layman, these methodologies seems to merely involve inserting variables into a formula.  This perception could not be further from reality.

Business valuers develop a comprehensive understanding of the business to be acquired and use their expertise and experience to determine those variables and critically assess the valuation  outcomes.

 

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