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