Business valuation is the process of determining what a business is worth, and provide an owner or Board of Directors with the fair market value of a company or group of companies. The value is the expected price that a business would sell for. The three fundamental approaches to making the value determination are:
Asset Approach - Uses a balance sheet of assets and liabilities to determine the value
Market Approach - Looks at what similar businesses are worth in the marketplace
Income Approach - Considers the projected revenue the business is expected to generate
A business plan determines the vision and direction of a new company, or changes the course of a mature company to help it grow and thrive. Business plans are critical for businesses seeking funding. Key components to a business plan include:
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