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David M Daggett CPA

Executive Leadership

David M. Daggett CPA - Everything you Should Know About Business Valuation

Buisness valuation is important in the financial and business industries. David M. Daggett is a Certified Public Accountant (CPA) who is experienced in finance and entrepreneurship. He has owned his own accounting firm as well as companies that manufactured supplies for law enforcement. As a member of the finance and business industries, he is well versed in business valuation. There are several things that you should know about business valuation.

There are three main approaches in business valuation. The first is asset approach. This process views the business as a set of liabilities and assets. Every business has both assets and liabilities. Financial professionals are able to use that information to estimate how much it would cost to create another business just like it. However, it can be a challenge to determine which assets and liabilities should be included in the valuation.

The second approach is the market approach. This process involves using the value of other, similar business to valuate a single business. This processes relies heavily on the market in which the company operates. This process uses the fair market value and estimates how much a buyer would be willing to spend on the business.

The third approach involves income. This process involves creating projections and estimates on what a business’s income could possibly be. This approach involves analyzing previous profits and considering the current financial market. Business valuation can help determine what a business can be sold for, and its financial value. David M. Daggett CPA is a CPA who is experienced in finance and business.

Source:

http://www.valuadder.com/valuationguide/business-valuation-three-approaches.html

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