Common Approaches to Business Valuation

Business Valuation
                         Business Valuation

Business valuation refers to the set of procedures for determining an organization’s economic value. Although it sounds quite simple, business valuation requires the right preparation and thought for carrying out the procedures flawlessly. Having an up-to-date business valuation is important for a number of reasons. You may want to sell off your business due to health or family reasons or due to retirement. You may require equity financing or debt for cash flow issues or expansion. Before investing in your business, potential investors would see the value of your business. Business valuation is also needed for adding shareholders. Whatever be the reason, the economic worth of your business depends on several factors such as your balance sheet, current economic condition and more. There are three major approaches to business valuation and each of them includes several methods which are applied based on the nature of the organization.

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