These factors include the pattern of historical performance and earnings, the company’s competitive market position, the quality and depth of management, marketability and others.
There are many factors that must be considered when valuing a business enterprise which include:
- Nature and history of the business;
- General economic climate and industry conditions;
- Earnings, cash generation and dividend-paying capacities;
- Sales of the shares and the size of the block to be valued; and
- Market value of the shares of the companies engaged in the same or a similar line of business.
QUESTIONS THAT OUR VALUATIONS TEAM CAN HELP ANSWER:
Our valuations team has cross sector experience and has recently
worked on valuations relating to IPOs, significant capital raises and purchase
In our valuation analysis, we considered two generally accepted valuation approaches used to value a business:
- Income Approach
- Market Approach.
While each of these approaches may be initially considered in the valuation, the nature and characteristics of the subject business and the objective of the valuation analysis indicates which approach, or approaches, are most applicable.