Business Valuations Market Approach

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.

 

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Dan Branch

Dan Branch is a graduate of the U.S. Naval Academy, has an MBA from Emory University’s Goizueta Business School, is a Certified Public Accountant (CPA), holds the Accredited in Business Valuation (ABV) certification from the AICPA, and also holds the Accredited Senior Appraiser (ASA) designation in business valuation from the American Society of Appraisers, and has over fifteen years experience in various types of financial advisory and business valuation engagements.

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