valuationbreak evenprofitcontributionforecastshiftqueuingbusiness analysis
accountbasbudgetBAS-I.Cshare valueshort salesinvestment
site mapform1

Browse All Question and Answer Items

Items selected where Item is 2058240

Questions & Answers

Q: Ahh I see -- But I am trying to see what the business is worth to me as an owner to buyout my partner.

A: It is still the same lets say you have $100,000 you can put it in the bank and get x% or invest in the business and get y% unless y is greater than x then you are better of putting your money in the bank ie less risk plus the value of y needs to be higher the higher the business risk. So you are attempting to determine the future business return/profit and then apply a required rate of return % that allows for the business risk. If you believe the business future returns will be greater this is reflected in the Relative indicators ie if the Market is growing then increase the Market Strength indicator and the profit goes up ... or if you think you can make operational improvements (these should be quantified) then increase the Business Market Position indicator. This provides expected outcomes to which you can then apply sensitivity analysis to determine the possible valuation range.

Question and Answer Item 2058240 - Browse All Question and Answer Items