Whether you have a business for sale or want to acquire a business, you should do valuation of your business. If company valuation is done properly, you will be able to ask fair market price and increase the chances of getting deal closed quickly. There are various methods used for business valuation such as Capital Asset Pricing Model, Modified Capital Asset Pricing Model and Weighted Average cost of Capital. We have explained here few business valuation method using Income approach to help you understand it.
Valuation based on Income approach demonstrates how to value a company based on its ability to generate desired income or economic benefits to its owners. The financial benefits such as discretionary cash flow or net cash flow is multiplied, discounted or capitalized to perform business valuations. Proper selection of capitalization rate or discount rate or valuation multiples will be the key for effective valuation of your business. Continue reading “Business Valuation Methods – Income Approach”
If you want to sell a business then complete knowledge of your business and the market is the key. In the business world, case studies are such readily available and powerful tool from which you can replicate the success by avoiding critical mistakes. Many cases studies have been published about selling business quickly at maximum price. Case studies are such reference guides of the business world to look at the solved problems to solve our own.
From the pool of available case studies on how to sell a business successfully, we have picked one of the best case studies here under for your quick reference. This case study shall guide you on how to prepare best to sell your business.
Continue reading “Selling a Business – A Case Study”
You bought a running business. Congratulations! So how have you planned to get your hands on it?
Your action plan for the initial period after you buy a running business would largely contribute to the success or failure of your business. With already lot of pressure and hundreds of ideas running on mind to grow the business, it is very easy to make mistakes in the initial phase of the business after you acquire it.
To ensure a smooth transition, here are the 7 things you should do right to lay a strong foundation for your business.
Continue reading “7 Things You Do After You Buy a Business”
How to sell or buy business quickly and at the best price is the biggest challenge faced by small and medium entrepreneurs in India. Selling or buying a business is a sensitive issue and needs careful ground work without proper information and knowledge. Also to find the genuine and serious buyers or sellers is a tedious task.
The traditional approach is to advertise in the newspapers or in trade magazines or take help of professional consultants. However both these approaches are costly while former’s response is question mark and short lived while later is expensive as professionals charge huge commission or retainer fees. Continue reading “How to Quickly Sell or Buy Small to Medium Business Online in India?”