Sunday, April 29, 2012

Seven Things that Determine the Value of a Business

Seven Things that Determine the Value of a Business: "The value of the business consists of not just the Price (i.e., the amount to be paid for the business) but also the associated Terms and the Deal Structure. Different values for a business can exist because of different operating assumptions, deal structures, payment terms, etc., not due to use of different valuation methods.

A few of the value drivers are:
1) Future Performance                                                    5) Deal Structure
2) Financial Leverage                                                      6) Asset Type
3) Financial Return Expectation                                       7) Exit Strategy
4) Cash Flow, Not Profits
These value drivers impact business value in many different ways as explained below."

'via Blog this'

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