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วันจันทร์ที่ 26 ตุลาคม พ.ศ. 2552

How to Appraise a Business

There is work out a lot of different means to value the company. For the small to mid-size business, there are about 3 main approaches that are used more than others and these are market value, earning and asset value.

In short, these are described as follows:

Rating based on income: First, looking at the possible profitability of the company in the future. The past earnings, expected future growth of the owner's compensationAdjustments, as well as the specific risk issues, such as customer concentration, very poor management and short diversification taken into account when the income is used based evaluations.

Market Review: This method of valuation of companies is very much alike, how to sell the house, while the values. What is considered here, which can pay market for business in question. Essentially an information gathering on the sale of similar businesses in industry, businessis in. The "Rule of Thumb" Information is only summary of the many companies with millions differences are not considered sold.

With estimates of revenue and market valuations, we can choose 2 different cost multipliers. One is the gross cost of sales and other costs, which divided the result. Applicable costs more is selected primarily on the profitability of the company. For example, the highly profitable business with the high price would be more practical to have.The business of assigned lower price and lower profits from the use of several of these loom is another correct result obtained when an application makes use of comparative data for at least a dozen of the same type businesses.

The asset assessment: This species is preceded by the evaluation procedures that companies pay fair market value of its physical assets and its immaterial assets. Be deducted from the total assets, liabilities and debts. To have the value of business thatIntangibles are used in some methods. Method that is used in this part, is estimated to earn 5-stage surplus. We can not go into details of how it is done, we explain only that there is method and a brief explanation. Never attempt to use this technology without some classes and seminars that you do in detail of the process train.

This calculation is about the intangible assets, fixed assets, liabilities, and their adjustments are estimatedValue for business and numbers, what reasonable return on the assets, the economy must be. If profit is large, as that particular number, there is evidence that company has some intangible assets that generate more profit.

If companies in question are not or only partly in cash then it is no intangible assets, and if this case, asset valuation technique is used in general. This is a case, because if the business is occupying the capitalsuperior in equipment and other tangible assets will be other assessment methods like the price far below the actual asset value, and without any good will. The goodwill is not considered at all, because there is no goodwill value, if the income it shows low incomes. It is understandable that, although business is not producing any profit or loss making, which seeks the seller, at least, what tools are worth acquiring. For this reason, this method has been used.



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original Washed Denim por Darren Delaye
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