Business Valuation Techniques
When selling your business, or any business for that matter, the primary question should be focused on the value of the business. Business valuation techniques can range in complexity from a simple calculation that gives you ballpark figure to one that evaluates tangible and intangible factors to produce a more in-depth result. Unfortunately, there is no standard business valuation formula that will work for all business types and circumstances. And, there is no generally approved 'right way' to arrive at an accurate business valuation. Accountants may view the figures one way while business brokers will evaluate based on a wider set of criteria. The difference is that accountants focus primarily on the books, while a good NJ business brokers will conduct in-depth research and use that data as a context in which to examine the numbers. For example, a common business valuation technique includes calculating the set-up and entry cost of a new business. Factors like promotion, h...