Business Valuation Estimate Worth of your Business: Oleksiy Nesterenko

Business valuation is the process of assessing the current financial value of a business in its entirety or, in some cases, the financial interest an owner and/or partner has invested. Business valuations are typically conducted by forensic accountants, a highly specialized field of business accountancy, and are required for business sales, estate evaluations, divorce litigation disputes and other similar legal and financial scenarios.


There are some occasions when business owners want to know or estimate the worth of their business. It is very imperative to assess business valuation to get to know that whether you have significant asset or liability. Mostly, true valuation of business occurs only when business owners sell the business. However, there are four basic methods of business valuation such as Asset Based valuation, Earnings Based, Market based, and Cash-Flow based. There is a common step which comes under all the methods, compilation of relevant and accurate financial information of the company.

In simple language, business valuation is a set of simple steps used to determine the value of the business or market value of the organization.
Asset approach - This approach is used to determine the liquidation worth of an operating business. It is a very effective approach to estimate the replacement value or liquidation value of the business.
Market based approach - In this approach, valuation of your business will depend on the analysis of different similar business to get estimate value or company valuation.
Earning Based Approach - It is closely integrated with the market approach. There is a categorized formula to determine the earning based company valuation.
Valuation = Average of normal EBT/capitalization rate
Cash Flow Based valuation - This approach is just similar to the earning based approach. It estimates the value of business depending on the future coming cash into the business.



All these methods can be applied to estimate company valuation in the market. Sometimes, reasons of estimating valuations might be just to sell off the company. Whatsoever the reasons are, you just need to consider the factors that influence company valuation process and methods precisely. Here are some factors that can affect the process of valuation.

 
Business valuation is a combination of art and science, which focus on the current value or worth of the business after analyzing other related factors. It is a complete educated guess to provide worth of the company or business to the owners for several purposes whether for selling or only determining the asset and liability. There are several websites who offer services of expert and experienced person to judge and evaluate the value of companies and business in the market.
 Oleksiy Nesterenko a seasoned finance and business development professional, offering over 9 years of experience across multiple areas of business including financial planning and analysis, capital raising, corporate finance, business strategy development, and M&A.. Based in Los Angeles, CA, Mr. Oleksiy Nesterenko provides expert forensic accounting, litigation support and business valuation services and Business Consultant for startup through Oleksiy Nesterenko Startup Finance.
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