Determine the purpose of the valuation
Gather financial statements and company data
Analyze revenue, profit, cash flow, and growth trends
Review assets, liabilities, and working capital
Assess market position, industry, and competitive advantages
Estimate future earnings or cash flows
Choose a valuation method
Apply discounted cash flow analysis
Apply comparable company analysis
Apply precedent transaction analysis
Calculate asset-based value
Adjust for debt, cash, and other non-operating items
Consider control premiums or minority discounts
Consider liquidity and marketability discounts
Review management quality and customer concentration
Factor in risk, growth prospects, and economic conditions
Reconcile results from multiple methods
Validate assumptions and sensitivity ranges
Determine final valuation range
Document key assumptions and conclusions