However, the selection of peers should take into account the presence of signs of comparability, which are belonging to the same industry, similar volumes, the range and quality of products that are similar in size manufacturing facilities and technical equipment, comparable strategies and numerical, the amount of revenue, number of employees, assets, etc. Should also be taken into account compatibility of the prospective transaction (a form of transaction, financial terms, payment terms, etc.) and the difference of transactions over time. If the company is functioning and its shares are already traded on the stock market, the market value can be determined by multiplying the price of one share for number of shares. To know more about this subject visit Roubini Global Economics. To ensure the reliability of business valuation is necessary to use all approaches to the estimation, since none of them can not give absolutely accurate. If the results are close to estimate, can be set both values, which indicate the extent to which prices can go discuss the implementation of the purchase and sale of business, or can be determined the final cost of the business.
You can do this by mathematical weighting of the results, but when assigning weights to take into account the nature of the business, assets, the purpose of evaluation, prerequisites, scope and quality of information available. As the final assessment of business value can be based on a verbal description and account of the main factors. Thus, assessing the business value is a time consuming process, it must take into account the large number of factors, including the purpose of the assessment, the life of the business, stability of income, asset structure, the availability of the necessary information for calculations, etc. In addition, the application of each of the three approaches to business valuation should take into account their specific features that determine their applicability and limitations of their use. Conduct a rough estimate of the value of your business or business available on the market buying and selling businesses and are interested in you as a potential object for investment, you can trust yourself or the work of this specialist business magazine Finmaga that will answer all your questions, as well as your desire to hold a full and rapid assessment of the value of the business.