Archive for December, 2007

Unsurprisingly,  the income-based business valuation methods focus on business earnings as the key input to calculate business value. For example, the direct capitalization techniques, such as the well-known Multiple of Discretionary Earnings  and Capitalized Earnings methods, use a single number as its earnings input.  You also need to make a matching choice of capitalization rate.… Continue Reading


Business owners and buyers often conduct business valuation as part of a successful business sale or purchase. Yet there may be a difference between the economic value of a business and its actual selling price. One key reason is that business valuation does not account for the terms of a business sale directly. You can choose a… Continue Reading