How a Business is Valued

Valuing a business or ownership interest in a business is a complex process.  Much thought and analysis must go into completing a valuation, if the appropriate conclusion is to be reached.  The skills and expertise of a business valuator play a critical role in determining a value conclusion. 

Three commonly accepted approaches to value are asset, income, and market.  The choice of which approach to adopt depends on the specific facts and circumstances of each valuation.  Each approach utilizes various valuation methodologies.  The approaches and methods include:

Income Approach   |   Market Approach   |   Asset Approach   |   Factors to Consider