As the name implies, the income-based business valuation methods consider business earnings when calculating business value. Importantly, the direct capitalization methods, such as the well-known Multiple of Discretionary Earnings method, use a single number as its earnings input. Coupled with a matching choice of capitalization rate, which captures business risk, the Multiple of Discretionary Earnings… Continue Reading
3 ways to measure your business worth There are 3 ways, known as business valuation approaches, that you can use to measure the value of a business: Asset approach. Market approach. Income approach. Each approach takes a different view of how business value is measured. To calculate business valuation results, professional business appraisers use a number of methods under each approach. … Continue Reading
If you need to present your business valuation results in a professional appraisal report format, you will find that the newly released Business Valuation Report Builder V2.0™ is the tool for the job. Professional business valuation reports that comply with the USPAP standards Starting with a 40+ page report template in the familiar Microsoft® Office Word format, the Report… 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
