The value of a business ultimately depends on the buyer’s price. There is no right way to objectively determine the value. However, as Steven Robins states in his question and answer column (Entrepreneur, January 11, 2004), “you could probably come up with several wrong ones.” The idea of business valuation
Many entrepreneurs purchase a company already in existence, enticed by the advantages of an already running company. However, it is essential to look at a company’s valuation before completing any purchase, or even before considering the business as a viable transaction. What is the return on investment that the investor can expect?
Business Valuation – Four Methodologies Used in Buying an Existing Business Many entrepreneurs purchase a company already in existence, enticed by the advantages of an already running company. However, it is essential to look at a company’s valuation before completing any purchase, or even before considering the business as a viable transaction.
Some entrepreneurs believe existing businesses, with an established business valuation, pose less risk in the purchasing process. While this may be true, due diligence remains essential in the purchase. Purchasers must fully understand what is being purchased and what assets are coming in the deal. Anyone who has decided to purchase
