ValuationValuation is the most important concept in finance, and something that every business owner should know something about. At the end of the day, each of us is in business to create value. Your company’s value captures nearly everything about your business in one, easy-to-understand number.
Valuation has a reputation for being boring, abstract, and complex…and to be honest, it tends to be. But fear not, I’ve boiled it down to three key concepts that make it easy.
- Valuation Methodology
- Common Pitfalls
- Value-Based Management
Valuation Methodology
We’ll start with a simple definition – valuation is the price that a reasonable person would pay to own the future cash flows of a business less any debt owed plus all
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