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Business Valuation: Determining The Worth Of A Company

YoungUpstarts

Business valuation is defined as a way to determine the overall economic value of a company , and is a necessary component of a sound business plan and strategy. Any of these situations will demand a valuation to determine current and future projected value. . Also referred to as Book Value .

Valuation 162
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How to Increase the Value of Your Small Business Before You Sell

Up and Running

Some of the key features that determine business value include: Financial health—capital structure, cash flow , revenue, and profit. Future financial prospects Owned assets Market value Book value. It’s very likely that your business will currently be somewhat profitable at some point.

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VC Governance FAQ: (2) Especially now, when transparency is so important, why is limited financial information available from a private company?

Pascal's View

Putting that point aside, for a moment, what is absent is a quoted liquid market in their equity and debt securities, which means that the determination of the book value of those private companies is necessarily subjective. Share and Enjoy: