Is There a "Best Method" for Determining the Value of a Business

question 111

Essay

Is there a "best method" for determining the value of a business? Why? How should a prospective buyer go about establishing the value of a business?

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Definitions:

Repaid

The act of paying back money that was borrowed from a person, bank, or financial institution.

Interest Rate

The ratio at which interest is applied to money loaned by a borrower from a lending party.

Compounded Semi-annually

A financial term indicating the interest on an investment is calculated and added to the principal balance twice every year, enhancing the total return over periods.

Obligation

A duty or commitment to pay money or perform some action.