Determining the Value of Your Manufacturing Business
This article explains the three types of business valuation methods and why it is important to know your business’s worth. The three approaches to value a business include market-based valuation, asset-based valuation, and income-based valuation. The market-based valuation method compares multiple businesses within the same industry. The asset-based valuation method involves adding assets and subtracting liabilities. The income-based valuation method includes estimating your expected net income through the present value. A few reasons to know your business’s evaluation include attracting investors, selling your business, planning for expansion, considering mergers and acquisitions, and succession planning.
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