How JAXA Can Help Your Business to Grow?
The key drivers of business valuation are assets, liabilities, income, management, and location. To determine the value of your business, you need to follow any of the business valuation methods. These are also known as business valuation models that help you to understand the worth of your business. Business valuation models include the following approaches:
1. Asset-Based Approach
This approach of determining the business value totals up all the investment. Applying this technique to a corporation serves well as it will be included in company sale, whereas applying the same to a sole proprietorship becomes difficult as the assets belong to the same owner and separating them for business and personal use becomes a challenge.
2. Earning/Income-Based Approach
This method believes in the fact that a business’s real value lies in building wealth for the future. Keeping this in mind, a valuator determines the future cash flow by examining the records and also assesses the future financial risk.
3. Market Value Approach
This approach compares the value of one’s business to similar businesses that have recently sold. It can be applied only when there is a sufficient number of competitors in the market.
Let's see how JAXA can help you in the business valuation process.
