Valuation Methodology Demystified for Closely-Held Businesses by Erin Hollis
Valuation Methodology Demystified for Closely-Held Businesses
By Erin Hollis
The article discusses the three approaches (income, asset & market approaches) to valuation methodology and the underlying methodologies for each (such as the Discounted Cash Flow Method, the Capitalization of Earnings Method and the Guideline Company Methods), why each may be applied and when they are appropriate to apply. Additionally, this articles discusses the particular industries or types of businesses the methodologies may be more appropriate for.