It may seem surprising at first that the valuation results are influenced by your need for business valuation. Business valuation is a process of measuring business worth. In addition to valuing the individual business assets and liabilities, the method can be helpful when allocating the business purchase price across the individual business assets, as part of the asset purchase agreement. Market based business valuation methods focus on estimating business value by examining the business sale transaction data available from the actual marketplace. Comparative transactions involving private companies that closely resemble the subject business. Selling price to business earnings such as net income, SDCF, EBITDA, or net cash flow. Each pricing multiple is a ratio of the likely business selling price divided by the respective economic performance value. So, for instance, the selling price to revenue multiple is calculated by dividing the business selling price by business revenue.
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