Business valuation is the process of estimating what a company or business is worth. Common approaches include discounted cash flow analysis, multiples of earnings or revenue drawn from comparable companies and transactions, and asset-based methods. The result is usually a range rather than a single number, shaped by growth, risk, market conditions and deal context.
A well-supported valuation anchors negotiations and helps owners decide whether, when and how to transact.
Prepared ahead of sales, acquisitions, equity raises and shareholder transactions.
Business valuation is the process of estimating what a company or business is worth. Common approaches include discounted cash flow analysis, multiples of earnings or revenue drawn from comparable companies and transactions, and asset-based methods. The result is usually a range rather than a single number, shaped by growth, risk, market conditions and deal context.
Prepared ahead of sales, acquisitions, equity raises and shareholder transactions.
A valuation is an evidence-based estimate, usually a range, derived from discounted cash flows, comparable multiples or asset values. Price is what negotiation produces, shaped by competitive tension, deal structure and timing. A well-supported valuation anchors the negotiation, but the market ultimately sets the price.
No single method is best: practitioners typically triangulate discounted cash flow analysis, multiples of earnings or revenue from comparable companies and transactions, and asset-based approaches. The right emphasis depends on the business — cash-generative companies suit DCF and earnings multiples, while asset-heavy businesses may lean on asset values.
Speak to a partner about how this applies to your transaction.
