Choose an approach and how will it affect your business

Assignment 11:

Valuation

You will find information on Valuation in Chapter 7 of Steven Rogers’ The Entrepreneur’s Guide to Finance and Business: Wealth Creation Techniques for Growing a Business. As it says:

“There are numerous reasons why an entrepreneur should know the value of his or her business. These include:

To determine a sale price for the company

To determine how much equity to give up for partnership agreements

To determine how much equity to give up for the investor capital”

I have placed into D2l the Business Valuation Report for Client Business, Inc. both in a Word Document and PDF. This is a sample so the names are generic but I think it does a good job of showing the work that goes into valuing a business by a professional business appraiser, Certified Business Appraisals, LLC. I would like to your team to complete the following task.

I would like you to select one of the three fundamental ways to measure the value of a business:

• Asset approach.

• Market approach.

• Income approach.

Please answer the following questions:

I would like you to explain how the method was accomplished with this company.

Then I would like you to tell me what you see a downsides of using this method alone.

Then tell me what this valuation might find as a value for your company.

The business in the professor is talking about is a cafe bistro. It provides services and products to customers

Use the file i attached to find the approach