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Business Valuation 101 Basics


Two of the most common questions we get asked are what:

  • What is a business valuation?

  • What are the best business valuations methods?

We have found that business valuation is often the most misunderstood process there is in business and most people do not understand that there are well defined business valuation processes that are followed to come up with a reliable estimate of the value of a business.

Over the past 15 years doing business valuations for many small businesses and SMEs, we have seen a wide diversity in the types of businesses - and a very wide range in value of a business.

So we have put together a whitepaper that:

  • Explains the basics of business valuation 101 in plain English.

  • Listed the typical business valuation methods.

  • Detailed the common business valuation formula used to determine the value of a business.

  • Answered the most common questions we get asked about business valuation basics.

Key Questions that Business Valuation 101 Answers

We often people do not understand some basic concepts in business valuation theory such as:

  • The difference between enterprise value and equity value.

  • What does market value represent?

  • What does an earnings multiple mean and how is it assessed?

  • What is the business valuation process?

  • Does the business value include cash and all the other assets (Hint: Not always)?

  • What do I do next after I have received my business valuation?

Okay that last question depends on your circumstance and is not really covered in this version of the whitepaper (although it should so stay tuned - we will send you any updates we make).

But all the other questions are covered by Business Valuation 101 - If you want to understand the basics you need this whitepaper.

Enter your email address and we will send it straight away.

Topics Covered ​By Business Valuation 101 Whitepaper

Key topics covered in the Business Valuation 101 whitepaper include:

  • Typical Myths and Misconceptions of Business Valuation

  • The ASX and what it means for business valuation

  • What is a business valuation?

  • Formal and informal business valuations

  • When do you need a business valuation?

  • Process of Business Valuation

  • Standard of Value

  • Business Valuation Methodologies

  • Key Issues and Questions about Business Valuation

Our Business Valuation 101 whitepaper is not a "business valuation bible" - but it is the first few chapters of the basics that allow you to make more sense of business valuation.

Enter your email address and we will email you a copy of Business Valuation 101 immediately.

Bonus Presentation - Key Drivers of Business Valuations

Sign up to get our Business Valuations 101 Whitepaper and we will also send you our latest presentation on the Key Drivers of Business Valuation and what strategies you need to put in place to increase the value of your business.

This presentation will include the latest EBITDA multiples and business valuation trends, the five key drivers that increase the value of your business and examples of strategic value transactions.

The presentation builds on the information provided in Business Valuation 101 and gives you more insights into what you can do to make a more attractive and valuable business.

Enter your email address and we will send it straight away.

business valution 101
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