There are many reasons why small business owners have their businesses valued. These include:
- seeking finance
- planning to sell their business
- dissolving a partnership
- family court matters
- admission of new partners or shareholders
This paper sets out various strategies to be utilised in the valuation of a business.
The paper is presented under the following headings:
- Reason For Valuation
- Types Of Assets To Be Valued In An SME
- Valuation Of Real Property
- Valuation Of Plant And Equipment
- Valuation Of A Business
- Definition Of Goodwill
- The Capitalised Earnings Method
- Capitalisation Rate
- Valuation Of The Business
- Net Tangible Assets
- Calculation Of Value Of Goodwill
- Deficiency In Goodwill
- Net Tangible Assets Methods
