Business Valuation And Divorce — Plan For The Unforeseen

Benefits of a Business Valuation

Business Valuation Methods

1. Market Value Business Valuation Method

2. Asset-Based Business Valuation Methods

3. ROI-Based Business Valuation Method

  • Discounted Cash Flow Method or the income approach which is based on cash flow projections that are discounted to present value.
  • Capitalization of Earnings Method which calculates the business’s future profitability based on cash flow, ROI, and expected value. This method works best for businesses that are stable since the calculation assumes that once the calculation is done it will remain stable for a long period.
  • Book Value method calculates the value of the business’s equity (assets minus liabilities) as listed on the business’s balance sheet.

How do you choose which valuation method to use?

Valuation of “Personal Goodwill”

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