How many businesses have you started? How many businesses have you sold? If you are an investor who has bought, started, and sold many businesses, you likely understand the process of determining the value of any company.
Approximately 543,000 new businesses are opened every month. In contrast, just as many employer businesses shut down than start up each month. As all of these business opening and closing transactions take place, someone has to determine the value of these companies. Business valuations are determined by one of three approaches:
- valuation market approach
- income valuation approach
- cost evaluation approach
Valuation Market Approach Is Not Always an Absolute Number
Many factors go into determining the value of a company, b