Once an owner has decided the time is right to sell the company, the first question is generally how much? The first step in the process should be to analyze financial and operational information and calculate a full, fair market and justifiable business valuation.
There are several generally acceptable valuation techniques, all which, by and large, can be categorized as one of, or as some combination and/or variation of three general methods.
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Asset Cost Base method, which is based on replacement cost, or fair market value of included assets.
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Income or Earnings Based method, which looks at the present value of future earnings.
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Market Comparison method, which estimates the value of one business by comparative value of others.
Our method would combine the first two with a cash flow regulator. ValuPro is a business valuation program/tool designed to calculate a fair market value of a business on the strength of its balance sheet, on the sustainability of its earnings and on the ability of a business to pay for itself over a reasonable period of time.
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