How to Do a Business Valuation?

Define the purpose of the valuation

Gather financial statements and supporting documents

Normalize earnings and cash flow

Choose the valuation method

Calculate value using the income approach

Calculate value using the market approach

Calculate value using the asset approach

Adjust for debt, working capital, and non-operating assets

Apply discounts or premiums if needed

Reconcile the results from each method

Review assumptions and sensitivity ranges

Document the final valuation conclusion

Suggested for You

Trending Today