When considering company valuations…Can a business have an impartial accountant, attorney, or advisor on the payroll? Well yes, but the business may have a hard time explaining that the service provider they pay, does not regard his payment in his service at all – especially the Company accountant. For that reason, we can help.
We have one of the most cost-effective and reliable business valuation (company valuations) calculators. Our valuation calculators ensure that your short experience of business valuation is pleasant. We understand the reasons for valuation, so on the one hand, we make sure that your impartial valuation stands under scrutiny but on the other hand, valuations should never amount to overkill.
For companies, i.e. incorporated legal business entities there are 2 components to the valuation process:
For publicly traded companies (“listed companies”) the market price of the shares represents the price of the shares and equity and is normally considered to be the market value of minority shareholding equity. The problem is that many companies are trading at prices either in excess or below their intrinsic share value and are not a reflection of the fundamental market value.
For private companies, there is no market price benchmark price (equivalent to comparative market analysis pricing in the real estate property market). So one is required to do a fundamental valuation computation involving the above 2-step approach.
This approach involves following a systematic methodology which, if done objectively, will reach the fair market value of the enterprise and the fair market value of the equity. Keep in mind, that for Empowerment Purposes, Companies apply one of the Standard Valuation Methods whenever shares change hands and we would remind everyone of this principle.
Conflict and disputes are inevitable and accurate valuations kept current in sound corporate affairs may save the day for the owners of a Company.