Business Valuation Based on Income: How Your Earnings Basis Choice Drives Your Results
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