Wiley Financial Services

There are a handful of common reasons why a business owner needs to evaluate the value of their business.  Some common examples are; looking to sell; looking to merge or acquire another company, needing financing or investors, possible tax purposes, and possible for divorce proceedings.  Each valuation will be determined by the scenarios mentioned above.  As an example, in a sale scenario, the majority of private small businesses are sold as asset sales, whereas the majority of middle-market transactions involve the sale of equity—each of these sales would require a different business valuation method.  With all this in mind, now it’s time to explore some of the most common business valuation methods, keep in mind you’ll want to work with a  business appraiser  to get the most objective assessment of what your business is worth.  Most small businesses are sold as asset sales, whereas middle-market companies are typically equity sales. This is ...