I highly recommend getting independent advice from a business valuer or broker. With that said, the four most commonly used valuation methods are as follows:
* Asset valuation, which is adding the value of the businesses assets and minus liabilities.
* Next, there’s capitalised future earnings, which is a method of determining the value of an organisation by calculating the net present value or NPV of expected future profits or cash flows.
* Earnings multiple consists of multiplying the business’ earnings before interest and tax or EBIT by your selected multiple.
* Comparable sales means looking at prices for recent sales of similar businesses, which I really encourage you to do.
