{"id":854,"date":"2021-08-31T08:41:54","date_gmt":"2021-08-31T07:41:54","guid":{"rendered":"https:\/\/www.cf-international-ecovis.com\/us\/?p=854"},"modified":"2022-01-20T11:29:01","modified_gmt":"2022-01-20T11:29:01","slug":"business-valuation","status":"publish","type":"post","link":"https:\/\/www.cf-international-ecovis.com\/us\/information-sheets\/business-valuation\/","title":{"rendered":"Business Valuation : Tips & methods"},"content":{"rendered":"

You are planning to buy a company in France or selling your business. In this article, CF Henderson US and its team of CPAs will give you the tools to understand business valuation and to draw up an analysis of the financial performance.<\/span><\/p>\n

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What is a business valuation ?\u00a0<\/strong><\/h2>\n

It refers to all the required tools <\/span>to diagnose the health and value of a business in the financial market. The objective is to collect key data on the company to look at its strengths and weaknesses in order to make the right choices in terms of strategy or sales price.<\/span><\/span><\/p>\n

For example, if you run a business that you plan to resell, it is essential to know its value before starting the process. This will prevent you from offering a purchase price that is out of step with the market. <\/span><\/p>\n

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What is a business valuation used for ?<\/strong><\/h2>\n

The purpose of the business valuation is to draw up an overall assessment of the situation by analyzing and evaluating the financial performance or the internal and intangible functions of the company.<\/p>\n

A business valuation can be carried out in many cases: company for sale, restructuring, donation, calculation of the solidarity tax on wealth (ISF<\/em>), merger, capital increase, new shareholders, initial public offering, etc.<\/p>\n

The valuation mission can be recurrent because it is not only necessary for the purchase or sale of a company. Indeed, as part of your business management, you can start an annual assessment process to find out more about the value of your intangible capital. A CPA can help you with this task.<\/p>\n

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How to conduct a business valuation ?<\/strong><\/h2>\n

What are the criteria to be assessed ? Who can help you with the valuation of a business ? The CF Henderson Cabinet takes stock to help you see things more clearly. <\/span><\/p>\n

When taking over or selling a business, you must conduct an evaluation of its specific characteristics, but also of its environment and other businesses in the sector. There are several approaches for this :<\/span><\/p>\n

The evaluation focused on the company\u2019s assets (its holdings, its debts). <\/strong><\/p>\n