How much is a business worth?

Description

Abstract: If a loan customer overextends itself by paying an inflated price for a business, there’s a good chance it will have a problem meeting its loan obligations. Rather than let that happen, an astute lender knows the importance of professional valuations and what goes into them. This article reviews some of the basics: the several meanings of value, the three approaches to valuing a business, and the importance of using a qualified appraiser.