As we approach the end of the year, it is the perfect time to see where your business is valued. You are already looking at the tax ramifications of 2016 (right?!?) and looking at how you may end the year (right?!?!). Take some time to look at the valuation of your business.
Exploring valuation techniques requires an understanding of the tools available. Which tools are utilized depends in part on the purpose of the valuation and the circumstances of the subject company. Generally, there are several approaches to valuing a business. Within these approaches, there are several different methods. Listed below are the major approaches:
Valuation is also a good benchmark for business planning. Learning the value now, then doing the same thing next year, shows you how much progress you have made in building your business.
Exploring valuation techniques requires an understanding of the tools available. Which tools are utilized depends in part on the purpose of the valuation and the circumstances of the subject company. Generally, there are several approaches to valuing a business. Within these approaches, there are several different methods. Listed below are the major approaches:
- Income Approach
- Discounted Cash Flow Method
- Single Period Capitalization of Earnings Method
- Market Approach
- Comparable Publicly Traded Company Analysis
- Comparable Merger & Acquisition Analysis
- Asset-Based Approach
- Adjusted Net Asset Method
- Excess Earnings Method
Valuation is also a good benchmark for business planning. Learning the value now, then doing the same thing next year, shows you how much progress you have made in building your business.
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