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NOVA Health Insurance Brokerage Discusses Business Valuation Methods
NOVA Health Insurance Brokerage Discusses Business Valuation Methods
BBG Broker, a NOVA health insurance brokerage, released a blog providing readers with information about the top 3 common business valuation methods.
Fairfax,
Virginia,
United States
(prbd.net)
17/12/2018
BBG Broker, a NOVA health insurance brokerage, released a blog providing readers with information about the top 3 common business valuation methods. Understanding these methods can help businesses get the best valuation possible for their needs.
Business valuations tell companies how much they are worth. They can be undertaken for several purposes. Business owners who are considering selling their companies, acquiring a new one, or merging companies should receive a valuation to ensure they sell for a fair price. Buy/sell agreements and shareholder or partnership disputes between principals of a company can also be resolved more easily if the company is properly valued. Valuations can also assist with funding negotiations, litigation support, details of employee stock ownership plans, gift and tax planning, and more. Having an up to date valuation of your company provides owners with detailed information that can be used to speed along the process of these business transactions and more.
There are three main types of business valuation approaches: asset based, market value, and earning value. Asset-based valuations involve using the market or book value of those assets to determine a company's worth. This includes cash, inventory, equipment, real estate, and stocks, among other assets. Market valuations, meanwhile, base the business's worth on estimates of how much people would be willing to pay for the company based on its popularity, competition, and products. These valuations can be highly subjective. Finally, earning value approaches determine the expected level of cash flow based on the company's prior history and use that information to determine worth. The type of valuation you choose for your business will depend on its characteristics and strengths. For example, a service-based company would likely not choose an asset-based approach, while a business whose competitor was recently purchased may select a market-based approach to provide a comparison to similar businesses in the field.
Speak to a professional business consulting firm for more information about how to receive assistance with your business valuation process. BBG Broker can assist business through the valuation process and beyond. Its services include benefits consulting and technology solutions, business insurance, executive planning, HR and compliance, international coverage, retirement plans, and wellness solutions. BBG Broker can be contacted online at https://www.bbgbroker.com/ or by phone at 844-201-3609. The firm is headquartered at 4069 Chain Bridge Road, Top Floor, Fairfax, VA 22030.
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About The Business Benefits Group
The Business Benefits Group provides comprehensive business benefits consulting and other valuable services to organizations of all sizes. The organization’s primary service areas include: benefits consulting, business insurance, executive planning, HR & compliance, retirement plans, international coverage, benefits technology, and wellness solutions.
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