The question every manufacturer wants answered – What’s the value of my business?
Abstract: The scene is set for a stunning M&A display for the rest of 2014 and beyond. Sellers in some industry segments may wind up in a bidding war that drives up their values. But some buyers are still trolling for bargains, so it’s important to not take the first offer without obtaining a formal appraisal first. This article discusses three valuation approaches — cost, market and income — that appraisers use to value manufacturers, while a sidebar cautions against using industry “rules of thumb” as the sole method of valuation.