Small business valuations are a mystery to many small business owners. They may have no idea how to value a company in a way that will be meaningful to creditors or investors. It is important to become clear on how the process works in order to truly understand the important role a professional can play in the process of small business valuations.
What is Small Business Valuation?
The process of small business valuation is essentially an exercise in economic analysis. One of the most important factors in determining the value of a company is found in the analysis of their financial information.
Business owners will need to have two key financial statements in order for the process to begin; an income statement and balance sheet. Ideally, these will be