As a continuation of this four-part series, there are four key issues that must be considered when performing valuations on business entities.  Ignoring them (or confusing them) can make a valuation analysis less reliable, or in the worst case, just downright wrong.

Issues previously discussed were (1) basis of value and (2) selecting relevant financial components.  In this part, we’ll discuss the third issue to consider:  common errors to avoid.  For business valuations, an appraiser will typically consider the three commonly accepted approaches: Asset Approach, Market Approach, and Income Approach.

The Asset Approach focuses on the value of the assets held by […]