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Valuation Method Subscribe to Valuation Method 3 posts by 3 users

Patrick M.

Commercial Real Estate Broker
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37 posts

I do not specialize in business brokerage, however, I have sold one business which was actually just an asset sale. What method have some of you used in determining the value of a business? In business brokerage, is there a " preferred method?"

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Tim W.

Real Estate Investor
Indiana
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1181 posts

Ok, I have read property appraisal books and have done millions of methods of property evaluation and got pretty good at it. Then I tried to read a business appraisal book :shock: :shock: :shock: You would not believe the particulars in properly appraising the value of a business...... Best to hire a business appraiser. They are specialists beyond special.....

Jim E.


Twin Cities, MN
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22 posts

You are right Tim. Business valuation methods are many and various and some methods are a science in themselves.

There is no preferred method and really depends on the business being valued. The various methods used will generally fall under three categories:
Asset based
Income based
Market based

Any business real estate holdings are usually appraised separately from the business and added after the business has been valued.