The availability of inexpensive and quick-turnaround options to get a private business valued has Brian Mazar, CEO of American Fortune Mergers & Acquisitions, upset. “Anyone can study and learn the mechanics of placing a value on a business, but those metrics should be the foundation for the rest of the valuation, not the final result,” Mazar emphasizes. And with that statement, Mazar released American Fortune’s tips on what a quality business valuation should include and what elements, beyond the foundational metrics, should be considered in a proper business valuation, www.PRnews.com reports.
Parts of a valuation are very subjective. How expert #1 feels about a market environment might be vastly different from how expert #2 feels. A business owner needs to be aware of this but not avoid it, he added. If a valuation is void of the “art” or subjective part, it is an incomplete valuation. Since valuations are based on 50% mechanics and 50% art (market forces), it is very critical the evaluator is well versed in both aspects.