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Approaches and Methodologies Considered When Appraising Your Business

BV Specialists

Under a “Capitalization of Earnings” approach, the appraiser will consider both historic and future income probability, based on a steady stream of revenue, and discount these streams to realize a net present value, while using appropriate rates of capitalization.

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The Role of Financial Projections in Business Valuation

Equilest

Asset-Based Valuation Asset-based valuation methods assess the value of a business based on its net assets. The Net Asset Value (NAV) method calculates the value by subtracting liabilities from the fair market value of assets, such as property, equipment, and intellectual property.