Determining the most appropriate valuation method to apply in a business valuation is often the subject of debate. Everyone seems to have his or her own opinion. The fact is, each method has its place depending on the circumstances. Furthermore, depending on the method you have chosen to employ, other aspects of the valuation process may be affected, such as: cap/disc rate; marketability/minority interest; type of earnings, etc. All these are interrelated, and if the valuation method is faulty, the entire valuation will falter. This well-balanced and complete course offers in-depth discussion on the pros and cons of each application; when and where each method might be most appropriate; and, the important “other” considerations in employing one valuation method over another.

Recommended book: Valuing a Business: The Analysis and Appraisal of Closely Held Companies, Fourth Edition by Shannon P. Pratt, Robert F. Reilly, and Robert P. Schweihs, McGraw Hill