Guidelines companies are used to help estimate the value of a private business.

What Is The Best Market Approach Valuation Method For Your Business?

Under the market approach, appraisers use guideline companies to help them estimate the value of a private business. With so many companies in circulation, this approach has become a long-standing valuation touchstone. This article discusses two primary valuation methods that are categorized under the market approach: the guideline public company method and the guideline merger and acquisition method. The guideline public company valuation method Under this method, appraisers identify companies whose stock (or partnership interests) …

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