There are a range of valuation methods
Posted: Sat Jan 04, 2025 4:07 am
1 The scale method 1.2 The profitability criteria method 1.3 The comparison method 1.4 The method of correcting net assets 2 What are the other specific elements involved in the valuation of a business? What are the methods for evaluating a business? Before selling or buying a business, it is important to carry out a company valuation in order to make a judicious estimate of its value.
Based on more recent or older models. These particularly concern: the scale vp it email database method; the profitability criteria method; the comparison method; the net asset correction method. The scale method According to this method, a variable multiplier coefficient is applied to the turnover of the business, depending on the sectors of activity. Although this coefficient can be obtained from management centers, accountants, firms specializing in business transformation or chambers of commerce and industry, the Practical Evaluation Memento is the most frequently used scale.
The profitability criteria method This method is fundamentally based on the profitability of the business. Its purpose is to apply a coefficient to the average of gross operating surpluses or net results of the last financial years. Banks use it much more since it allows them to measure the borrower's ability to repay his loan. The comparison method This method of valuing businesses allows you to compare businesses of the same type located in the same sector.
Based on more recent or older models. These particularly concern: the scale vp it email database method; the profitability criteria method; the comparison method; the net asset correction method. The scale method According to this method, a variable multiplier coefficient is applied to the turnover of the business, depending on the sectors of activity. Although this coefficient can be obtained from management centers, accountants, firms specializing in business transformation or chambers of commerce and industry, the Practical Evaluation Memento is the most frequently used scale.
The profitability criteria method This method is fundamentally based on the profitability of the business. Its purpose is to apply a coefficient to the average of gross operating surpluses or net results of the last financial years. Banks use it much more since it allows them to measure the borrower's ability to repay his loan. The comparison method This method of valuing businesses allows you to compare businesses of the same type located in the same sector.