Need Help? Call 1-866-711-5837

Business Valuation Procedure | RC1020

RC1020 Business Valuation Procedure

Share this

easily editable in ms wordBusiness Valuation Procedure

The Business Valuation Procedure describes how to regularly conduct business valuation assessments in order to monitor valuation and multipliers in relation to valuation and multiplier targets, provide general and industry specific economic information that affects the business; provide information for business strategic planning, and use worth in equity to raise capital. This procedure applies to Top Management and the Finance Department. (14 pages, 1093 words)

Business Valuation Responsibilities:

Top Management is responsible for setting valuation schedules, setting valuation targets, for reviewing valuation results in relation to targets, and for monitoring and adjusting business plans and strategies in order to reach valuation targets.

The CFO (Chief Financial Officer) is responsible for executing the valuation process, recording valuation plans, results, improvement plans, and for providing all needed information for the valuation process.

Business Valuation Definitions:

Valuation – The process of assessing or estimating the value of a business. There are several valuation approaches, including income (based on expected future cash flow), market (based on value of similar businesses), and asset (based on the net equity of the value of the business assets). The most appropriate method depends on the context or reason for the valuation. Generally, the income method of valuation is most practical for solvent, ongoing businesses.

Multiplier – Generally, the profits/earnings ratio of a business that plays an important role in income method valuation.

Business Valuation ProcedureBusiness Valuation Procedure Activities

  • Business Valuation Plan
  • Business Valuation Steps
  • Company Valuation Review
  • Reaching Valuation Targets

Business Valuation Procedure Forms


SKU: RC1020 Tag: .


Write a review

There are no reviews yet.

This item is included in the following item(s):

Use the Financial Policies and Procedures Manual to quickly establish consistent financial statement treatment, treasury management, strong financial auditing and internal controls to manage capital. Implement consistent standards based on standard best practices that help you comply with regulatory requirements. Download your set of easily editable Microsoft Word documents.

More >>

Use the Raising Capital Policies and Procedures Manual to help your company plan its capital needs, determine how much capital should be raised and the best means of raising it, and how to effectively manage capital.

More >>