What Is My Used Car Worth

The

earnings multiplier method is often used with regard to a business with continuing operations. This method helps take into account the future earnings potential of the business, for that is real value to a purchaser. This method bases value on a multiple of the earning potential, with the multiplier varying by industry, business type, risk involved, and other factors. Some businesses are simply worth more than others, for their earnings potential is larger, more stable, and more competitively attractive. Coming to an agreement of what future earnings potential could be can be a challenge, which is where a qualified business broker and valuator will be valuable. A broker will utilize data from similar recent transactions to gauge what is happening in the marketplace

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