Business Valuation Process
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Business Valuation Process
There are three key parts to the valuation process:analysis & research; modelling and pricing.
These three key parts are represented by the three layers of outer leaves of the lotus. The inner yellow flower represents the valuation.
Part 1: Analysis and research
The lower supporting leaves of the lotus consists of analysis and research:
The analysis and research provide the foundation and inputs that go into the second part of the valuation process – valuation modelling.
Part 2: Valuation modelling
The inner leaves of the lotus represent valuation modelling. Through the valuation model we estimate the business value.
There are two components to valuation modelling:
Part 3: Comparable analysis
The outer leaves of the lotus represent the external pricing research to support the business value.
This research comprises of comparable company and comparable transaction analysis: