Category Business appraisal

Three Common Business Valuation Approaches

Small business valuations

There are a lot of reasons a business owner would need small business valuations. Perhaps they are closing down their business and need to analyze their debt to assets to pay off their creditors. Perhaps they are selling the business to someone else and need to determine the business’s ability to generate income. Perhaps they are generating capital to start or grow their business and need to represent how much money a business like theirs tends to make. Each of these scenarios requires small business valuations, but each of them involves a totally different calculation, which produces a totally different (yet still accurate) number. Sometimes, the best small business valuations are a compilation of several valuation approaches. Let’s consider the three most common approaches for small business valuat

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