Business Valuations Market Approach
Hey everybody Dan Branch with IAG Forensics & Valuation here with another episode of behind the numbers. Today I wanted to talk a little bit about the Business Valuations Market Approach and go into more detail about that approach to valuing a company.
The Market Approach is kind of similar to real estate if you’re looking at what other comparable houses are selling at on the market. In a market approach for a business valuation you’re looking at what businesses are selling for, so you look at sales of similar types of businesses if that information is available or maybe you could even look at what stocks of similar companies are trading at on the public markets.
The market approach is really looking at information that’s typically readily available in the market to get an idea of the value of your company. Now there could be very significant differences there could be very minor differences between the companies that you look at in the marketplace in your own company but that’s what a business valuation expert really helps you do figure out what those nuances are
In our next episode we’re going to be going more into the Income Approach I look forward to seeing you there.
Share this content with your friends and colleagues