Tag Archives: corporations

The art or “science” of business valuation

Business evaluators use a variety of financial models as guidance in their valuations but their personal judgment is the principal element in their decision to put a value on a business. Large corporations use their assessment of the potential future of the business and the potential synergies they might get from acquiring it in in order to make an offer for an acquisition. Small business buyers however, base their offering prices mostly on the past history of profits.