Market approach: Is it right for your business?
Abstract: The market approach is often used to value private businesses. It derives value from pricing multiples based on comparable businesses or ownership interests that have been sold. This article provides an overview of two methods under this approach — the guideline M&A method and the guideline public company method — and various criteria that valuation experts may use to identify comparables. Estate of Gallo v. Commissioner, T.C. Memo 1985-363