CHAPTER 9

Business Valuation

Valuing a business is one of the biggest financial decisions that many small business owners will ever have to make. Whether it is the decision to go into business by buying an existing business or to expand a business by buying or merging with a competitor or the valuation of shares for bringing in new equity partners, or to the consideration of selling a business, the valuation of a business can be a make-or-break exercise.

Despite its importance, valuing a business is as much an art as a science. Furthermore, different people, with different objectives and different viewpoints will all value a business differently. Therefore, when placing a value on a business, it is critical to understand the context of other ...

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