Valuing the Business
After deciding to buy or sell a business, the subject of “how much” becomes important. Determining the value of a business is one of the most difficult aspects of any transaction, since every business is unique. Ask appraisers the value of your business and they will respond, “What’s the purpose of the valuation?” Valuation methods — and therefore values — vary depending on the reason for the valuation. Different techniques can be used to arrive at different values, and each of the values may be correct for a specific situation.