Valuing an existing business involves multiple factors and methodologies. Common approaches include:
Market Approach: Compares the business to similar companies that have been sold recently to determine its market value. Income Approach: Calculates the present value of expected future cash flows, often using a discounted cash flow (DCF) analysis. Asset-Based Approach: Values the business based on the total value of its assets minus liabilities.
Engaging a professional appraiser or financial advisor can help ensure an accurate valuation.