Business Valuation Approaches

What are the three main business valuation approaches?  First, let’s start with ‘what is a valuation approach?’  A valuation approach is a process used to arrive at an indication of economic value of an owner’s interest in a business.  The three most common valuation approaches are the income, market, and asset approaches. The income approach determines…

SBA Business Valuation Methods

When lenders value a business for an SBA loan, the Small Business Administration does not require that the business valuation include any specific business valuation method. However, the SBA does provide lenders a set of valuation methods that are termed “acceptable.” These acceptable SBA business valuation methods are summarized below: Gross Revenue Multiplier – This…