Approaches to Business Valuation
Here’s what you need to know. February 25, 2020 In the third quarter of 2019, more than 2,400 small businesses were sold. The median sale price was roughly $278,000, up 3.3% from 2018.1 As a business owner, ascertaining the value of your business is essential for a variety of reasons, including business succession, estate tax estimates, or qualifying for a loan. There are several valuation techniques, ranging from the simple to the very complex. Outlined below are three different approaches to valuing a business. Comparable-Company Analysis. One approach to determine the value of your business is to use a comparable-company