Valuation is a process used to estimate the economic value of an owner’s interest in a business. Valuation is used by interested parties to determine the price they are willing to pay on sale of a business.
Valuation can be used by business appraisers to resolve disputes related to estate and gift taxation, in divorce litigation, and for creating a formula for establishing the value of a partner’s ownership interest in buy-sell agreements. The process involves assessment of metrics, each weighted to fit their significance to the market served, the firm’s performance versus its peers, market and technology trends, tangible assets and intellectual property.
Eighty20 Advisors believes that the core metric of value is discounted cash flow (DCF). DCF is determined by intelligent projections of future company performance, and adjustments that account for market, regulatory and other elements of forward risk.
Our focus is on valuation documentation to support a business owner’s asking price when a business is offered for sale.
- SWOT Analysis
- Benchmark study
- Business Valuation