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Business Valuation 7: Essential Concepts and Terminologies Explained

RNC

In this blog, we will delve into seven essential concepts and terminologies related to business valuation. Market Approach: The market approach relies on comparing the target business to similar companies that have been recently sold or are publicly traded.

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Understanding Valuation Techniques in Mergers and Acquisitions

Sun Acquisitions

This approach relies on analyzing the market value of comparable publicly traded companies, known as guideline companies or multiples. By comparing key financial metrics such as price-to-earnings (P/E) ratios, price-to-sales (P/S) ratios, and price-to-book (P/B) ratios, analysts can estimate the target company’s value.