Transcription of Chapter 4: Business Valuation: Auto/RV Dealerships
{{id}} {{{paragraph}}}
Example: dental hygienist
Chapter 4: Business Valuation: Auto/RV Dealerships
85 Chapter 4: Business valuation : Auto/RV DealershipsWhen valuing the Business , the most difficult task is adjusting the incomeand expense statements as well as the balance sheets of the operation. Thissection focuses on the adjustments and nuances of making theseadjustments, as well as the most typical techniques used to value a techniques have been simplified for the Balance Sheet ( Business valuation )Overall, this valuation method is used to value a company as a going con-cern. However, it has a number of shortcomings in that it does not considerintangible assets such as: an assembled workforce, trademarks, customer lists,technical know how, etc. Most importantly, if a buyer were to start the businessfrom scratch, then this buyer would probably purchase all of the assets at a liq-uidation value. In summary, this valuation methodology is most important to theinsurance industry and financial lenders, and usually represents the floor valueof a Business .
Business Valuation: Auto/RV Dealerships 86 If the company is using the FIFO (first in, first out) method of inventory, then one may utilize the …
Tags:
Information
Domain:
Source:
Link to this page:
Please notify us if you found a problem with this document: