A business valuator will use one of three approaches. The first approach is the asset approach where the total assets of the business will be totaled up, and the total liabilities of the business will be subtracted out to arrive at the value. The second approach is the income approach where the business valuator will look at the earnings history of the business or the practice over a particular period of time. The third approach is the market approach where the business valuator will look for a similar business in the locale which has been recently sold. A good business valuation will oftentimes use two or more of the approaches.

© JOHN F. GREENE ATTORNEY AT LAW | ALL RIGHTS RESERVED.

SEO & Web Design by Vinci Digital

STAY CONNECTED: