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
Analyze customer concentration and recurring revenue
Evaluate market position, competition, and industry outlook
Compare with similar businesses using market multiples
Calculate discounted cash flow based on future projections
Estimate asset-based value for tangible and intangible assets
Consider owner dependence and management strength
Apply discounts or premiums for control and marketability
Reconcile results from multiple valuation methods
Use a qualified business appraiser or valuation expert