Business Valuation Methods
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How to Value a Business
There are many accepted business valuation methods, but when it comes to setting and evaluating business sales prices, most buyers and sellers focus on the businesses earning potential.
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Appraised Value vs. Market Value: Distinctions in Business Valuation
Appraised value provides a structured, objective assessment and market value aligns with real-world market dynamics, both essential in business valuations.
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Why Experienced Business Brokers & Owners They Represent Utilize Third Party Business Appraisals
Improperly valued small businesses generally benefit no one, often putting both the owner who wants to sell and their broker at a disadvantage. Increasingly, successful brokers and their respective sellers can set the price and defend it with objective credentials third party appraisals.
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Mixing Apples and Pineapples: The Build-Up Method in Business Valuation
There are many methods available for determining the risk rate for various income streams, but one of the more commonly used methods is called the Build-up method.
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Normalizing Adjustment in Rent for Business Appraisal
One of the most important normalization adjustments business appraisers consider is that of the rent adjustment.
More Articles on Business Valuation »
Factors Impacting Business Value
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How to Increase Business Value to Build a Company Buyers Want to Buy
Discover strategies to increase business value and build a company buyers want at premium prices. Learn actionable methods to enhance company valuation, create scalable operations, and maximize business attractiveness.
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No One Will Pay You for a Business That Amounts to Working 60 Hours a Week at $16/Hour
Why do so many businesses fail to sell? Are non-selling businesses flawed in some way? In short, buyers look at financial results. However, there are several steps a business owner can take to avoid falling into the 'non-selling business' category.
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Valuing a Business That Has No Future
“The value of an operating business is based on its expected future earnings.” That is the line I hear most often when discussing how to determine what the fair market value of an operating business is.
The Business Appraisal Process
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What is a Business Appraisal and When a Small Business Owner Might Need One
A business appraisal gives small business owners an independent valuation of the business. Learn what goes into an appraisal and when you might need one.
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Choosing a Business Appraiser
Find out about the types of appraisers and how to pick the right one for your situation.
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What Does the Business Appraisal Process Look Like? A Detailed Account of How an Appraiser Values a Business
One of the most commonly asked question in all the various classes I have taught to new business appraisers is a two-part question: “How do I start my first report, and once I’ve started, what do I do next?”
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How Can You Tell If the Business Appraisal Report You Receive is Any Good?
Every single appraisal is an expression of the appraiser’s opinion and different appraisers can come up with different values - even using identical data. Each value conclusion can be correct even while they are different.
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In Business Valuation, How Does One Judge an Opinion?
We have a process we follow in order to develop our value conclusion of the subject ownership interest we have been asked to appraise.
Financial and Valuation Considerations
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Is Your Business Worth Selling?
A few steps on how to evaluate your business and determine if it's worth selling as an on-going concern or whether you should liquidate.
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Your Business May Be Worth More If You Stop Working So Hard
Did you know that the owner's involvement in a business affects its value? A semi-absentee business is more valuable than an owner operated business; the less an owner directly works the more a buyer will pay, all else being equal.