Business Valuation
What is a Valuation?
A valuation is a determination of value of a business based upon extensive analysis of its past and current financial history, the environment in which a business operates, future growth outlook and the risk associated with an investment in such organization.
There are many reasons to determine the value of a business. Knowing the worth of your business is of utmost importance when you are:
- Buying or selling a business
- Partner/Shareholder Sell-Buy out
- Developing a business plan
- Raising capital/financing
- Business succession planning
A standard business valuation should include the following:
- Description of the business
- Industry comparative & competitive analysis
- Economic background and future outlook for the business
- SWOT analysis
- Earnings history with 3 year earnings projection
- Balance sheet/cash flow summaries
- Explanation of the models used for the valuation
- Summary of valuation
