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Mistakes To Avoid When Valuing Your Business

Burns Valuation Consulting has over twenty years of experience in business valuation, strategic planning and analysis, and real estate brokerage. Business valuation is a process in which a set of procedures are used to estimate the economic value of an owner's interest in a business. http://www.burnsvaluationconsulting.com/business-valuation-atlanta-ga/

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Mistakes To Avoid When Valuing Your Business

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  1. Mistakes To Avoid When Valuing Your Business

  2. Accounting for Assets and Liabilities correctly:- Each of the three main valuation approaches to business valuation (income, market, and asset) is designed to calculate value based on cash flow generated by the operating assets of the company. Liabilities must be considered when calculating an Enterprise Value.

  3. Risk in projections:- Any business growth that is assumed should also be supported. The business valuation expert in Atlanta or in any city should work closely to reconcile his/her projections against theirs. If those estimates vary significantly seek to understand why and make documented adjustments.

  4. Mismatching capitalization and discount rates:- Capitalization and discount rates convert a series of present and future anticipated cash flows, respectively, into present-day business value. However, rates created for one income stream can get applied to another one by mistake. These rates reflect the risk inherent in the cash flows based on company size, stability, market, and other company specific risk factors.

  5. If you think any of these mistakes, are present in your business valuation, ask about it and maybe get a second opinion. A flawed business valuation can lead to poor decisions that can have far reaching impacts. Burns Valuation Consulting has over twenty years of experience in business valuation, strategic planning and analysis, and real estate brokerage. Address:- 12610 Itaska Walk Alpharetta, Georgia, GA 30004 Phone:- 678-235-4616 Website:- http://www.burnsvaluationconsulting.com/ Twitter:- https://twitter.com/bradburnsCVA Facebook:- https://www.facebook.com/Burns-Valuation-Consulting-LLC-1403411516358877

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