BUSINESS VALUATION SERVICES

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The economic value of a business is driven by a multitude of factors and circumstances, and is broadly defined to be the total sum of all tangible and intangible elements associated with the business. Examples of tangible elements include monetary assets, property, inventory, and receivables whilst examples of intangible elements include brand name, goodwill, patents, and trademarks. 

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There are three commonly used approaches used in business valuation: the income approach, the market approach and the cost approach. Within each of these approaches are various techniques applicable for determining the value of a business, its application dependent on the characteristics of the business being valued. Generally, value is determined using the income approaches by calculating the net present value of the cash flows generated by the business (eg. discounted cash flow); the market approaches determine value by comparing the subject company to comparable companies sharing comparable characteristics such as similar industry, size or geographical region; the cost approaches determine value by estimating the costs applicable to recreate a similar business or asset. A number of business valuation models can be constructed that utilize various methods under the three business valuation approaches. Some of the valuation methods under each approach are presented below: