Market-BAsed Approaches to Business Valuation 2019

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Market-Based Approaches

A general way of determining a value indication of a business, business ownership interest, security, or intangible asset by using one or more methods that compare the

subject to similar businesses, business ownership interests, securities,

or intangible assets that have been sold.

Guideline Public Company Method

A method within the market approach whereby market multiples are derived from market prices of stocks of companies that are engaged in the same or similar lines

of business and that are actively traded on a free and open market.

Merger and Acquisition Method

A method within the market approach whereby pricing multiples are derived from transactions of significant interests in companies engaged in the same or similar

lines of business.

Guideline Company Transactions Method.

A method within the market approach whereby market multiples are derived from the

sales of entire companies engaged in the same or similar lines of business.