One of the best known methods in private company valuation, the multiple of discretionary earnings technique, requires that you assess the firm across a number of value factors. Each factor has a weight indicating how important it is. You assign a score to each value factor based on its relevance to the company being valued.… Continue Reading
In business, cash is king. It stands to reason that the primary function of a business is to generate desired returns for its owners. Unsuprisingly, business value is defined by its earning capacity. The greater the returns, given an acceptable level of risk, the higher the business value. No other business valuation method captures this… Continue Reading
