Keep me logged in until I sign out. Top 10 Methods of Valuing a Business One of the most difficult tasks in selling a business is determining its value.
Business valuation is a very inexact science, and no single approach governs all situations.
Rather, several different valuation approaches should be considered and refined according to circumstances. Following is a list of the top ten approaches professionals use in placing a value on a business. This method involves a review of the amounts paid for other similar businesses in similar transactions for which there is available public information. This method, commonly used where a company's sales and earnings are in a state of decline, is based on the book value of the assets of the business. Book value is based on the difference between a company's total assets and total liabilities by reference to its balance sheet.