Business
What are the first steps in a conversation about valuation? When we sit down with business owners, we talk about their dream and where they want to go with their business.Then, we start by looking at the current valuation. Many factors go into it, but we start with financial statements.We look at the cash flow that would be available for the new buyer to pay themselves, pay down debt, and have some cushion leftover.The value of the business is also based on qualitative aspects.