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How to Value a Small Business

Equilest

Different Approaches to Valuing a Small Business Asset-Based Valuation This approach calculates the value of a business by summing up its tangible assets, such as inventory, equipment, and real estate, minus liabilities. How often should a small business be valued?

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Private Company Valuations—A Complete Guide

Valutico

Two commonly used asset-based approaches are: a) Book Value Method: The book value method calculates a company’s net asset value by subtracting total liabilities from the fair market value of total assets. While this approach focuses on the balance sheet, it may not consider intangible assets or future earnings potential.

article thumbnail

Private Company Valuations—A Complete Guide

Valutico

Two commonly used asset-based approaches are: a) Book Value Method: The book value method calculates a company’s net asset value by subtracting total liabilities from the fair market value of total assets. While this approach focuses on the balance sheet, it may not consider intangible assets or future earnings potential.