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Finance Matters - How to Value a Business

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27 June 2013
Whether you wish to sell or buy a business or operating division, Hazlewoods can provide a realistic, objective assessment of its market value.
The valuation of a privately owned business depends upon a number of relevant factors, taking into account commonsense, informed judgement and reasonableness.
There are traditionally four valuation methods;
  • Price Earnings (P/E) based valuations;
  • Net asset based valuations;
  • Dividend yield based valuations; and
  • Discounted cash flow base valuations.
In practice, a combination of methods are used, e.g. a multiple of sustainable profits, with a debt/cash free adjustment.
If you want expert business valuation advice, talk to us. Whether you are considering a merger, acquisition, joint venture, disposal, flotation or reorganisation, we are ready to help.
For further information on how to value a business please download our How to Value a Business Factsheet.