Quick Takeaways

  • Understanding the basics of business valuation is a must for any business owner or investor.
  • Covid-19 has had an impact on the business valuation process.
  • Different types of businesses require different approaches to valuation.

Understanding the basics of business valuation is a must for any business owner or investor. While some situations require a formal assessment from a professional certified in valuation, knowing how to calculate a quick estimate can help with business planning, filing taxes, or applying for a loan. There are different valuation methods based on assets, earnings, or market value.

Covid-19 has had an impact on the business valuation process. Consider whether the business may have been affected by government mandates or laws. It’s also important to understand the company’s response and performance in the context of the pandemic.

Different types of businesses require different approaches to valuation. In many cases, the information needed to conduct a valuation and even the calculation method may be specific to an industry or property type. Hotels and motels, retail establishments, franchises, and special purpose properties such as farms or cannabis businesses all have their own unique needs.

See References for more information.

Latest on this topic

Advertisement