Determine the purpose of the valuation
Gather financial statements and tax returns
Normalize earnings and remove one-time items
Review revenue, profit, cash flow, and growth trends
Assess assets, liabilities, and working capital
Evaluate industry conditions and market position
Compare with similar businesses using market multiples
Estimate future cash flows
Select an appropriate discount rate
Calculate discounted cash flow value
Apply earnings or revenue multiples
Consider asset-based valuation
Adjust for debt, excess cash, and non-operating assets
Account for customer concentration and key-person risk
Factor in legal, operational, and market risks
Reconcile results from multiple valuation methods
Consider control premiums or minority discounts
Consider liquidity and marketability discounts
Document assumptions and final valuation range