There are several methods to value a business depending on the desired outcome for such a valuation.
Asset Valuation considers the business’s assets including tangible and intangible items.
Historic Earnings Valuations considers the business’s gross income, ability to repay debts, cash flow and general historic performance to determine a current valuation.
Relative Valuation method basis - the valuation of the business on a like for like basis similar to that of a RICS Redbook Valuation.
Future Maintainable Earnings Valuation basis - the valuation on the expected future income of the business and the potential the business has to grow.
Discounted Cashflow Valuation factors in fluctuations to future cash flows and profitability allowing for a more accurate and realistic valuation to be achieved.
Depending on your business valuation requirements will then depend on the method used to complete the business valuation.
Steren Surveyors UK Limited
RICS Regulated Firm Registration Number: 853022 Steren Surveyors are a trading style of Steren Surveyors UK Limited. Registered Company: 13796952 Registered Address: Redruth House, Cornwall Business Park West, Scorrier, TR16 5EZ
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