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Top 5 Reasons why Business Valuation is Beneficial for Start-ups and MSMEs

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If you did not carry out business valuations over the last 12 months, then it’s time you should consider it. Business valuation gives deep insights into the current value of the company in terms of market capitalization, asset value and income flow. Business valuation plays an important role not only for giant corporations but also for startups and MSME sectors. If you are a startup or an MSME enterprise, then here are the top reasons why business valuations are beneficial to you. Raising Funds from Investors: If you are a startup and seeking to raise funds from investors, then you need to present a proper business plan and financials. This includes present financials as well as future projections. However, you need to determine the valuation of your startup before going for funding. The investors will go through the current valuation of your startup and how much are you planning to raise and at what valuation.   Bank Financing: If you are planning a huge capital investment for a pr
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Why is Business Valuation necessary & it’s 6 Steps to company valuation?

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Business valuation is the process of determining the economic value of a business or company. There are a number of methods that can be used to valuate a business, and the most appropriate way depends on the specific business being valued.  The three most common methods of business valuation are the: Income approach Market approach Asset-based approach The income approach estimates the future economic benefits of a business by discounting the expected cash flows to a present value. The market approach estimates the value of a business by analyzing comparable sales of similar businesses. The asset-based approach estimates the value of a business by analyzing the balance sheet to determine the fair market value of the assets.  Every business has two types of value: Intangible: Intangible assets are more difficult to value. These are the non-physical assets of a business that contribute to its value but are not easy to see or touch. Examples of intangible assets include things like inte
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Location: India
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