Monday
08Dec2008
Four Models of Business Valuation
Monday, December 8, 2008 at 10:58AM 
Throughout the business valuation process, you will need to bear in mind the ‘components’ your business has: the assets it owns, the goodwill it has with customers and suppliers, and the expertise of its employees.
The asset-based approach is the most conservative of all valuation models. It is appropriate for businesses such as property companies or manufacturers, where assets form a large percentage of the ‘worth’ of the business (in the former case, buildings or development sites; in the latter case, expensive tools or machines). This method gives you a rough idea of the minimum price you can expect to negotiate – a financial comfort blanket.
