3 Ways of Determining a Business Value
Whether you’re thinking of selling your established business or maybe you’re looking for new investors to join you, there will come a time when you will have to determine the value of your business – in other words; you’ll need a business valuation. Business valuation services are provided by professionals like EVCOR, who will work with you to conduct a thorough evaluation based of multiple factors – internal and external – to determine a fair economic value of your business. This being said, we believe that as a business owner, it’s important for you to understand how a business valuation works even if you decide to hire experts. In this blog, we’ll walk you through the three most common business valuation methods for small businesses. Method 1: Market Value Based Approach Probably the most subjective approach, the market value based approach determines the value of your business by comparing your business to other similar companies that have already been sold. Therefore, the value o