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Business Valuation Methods – Special Adjustments

In addition to factors present in large firms, there are additional factors which must be considered when valuing small firms.  These factors require special adjustments to be made to the final valuation, whatever method is used to calculate it.  These adjustments...

Business Valuation Methods – Other Methods

There are several other methods of calculating the value of a new firm, by considering it as a project or a series of decisions.  These methods include decision tree analysis, scenario analysis and real options pricing techniques.  While the examination of these new...

Business Valuation Methods – Asset Based Theories

Asset based theories start from the premise that the success of a business is its ability to accumulate assets, and it is because of those assets that the firm can generate income. Therefore, it is the value of the assets that comprises the value of the firm (Pricer...

Business Venture Valuation

Estimating the value of a venture is critical to many decisions that an entrepreneur must make as the firm develops.  By knowing the value, critical decision making process can take on new richness.  The impact of the choices an entrepreneur makes may be directly...

Financing the Venture – Capital Structure

Once an entrepreneur is aware of the financing options available it is time to consider capital structure.  Capital structure is an important consideration for any business.  It refers to the “right hand side” of the balance sheet, or the combination of debt and...