Business Valuation of a Day Spa

1647 Words Feb 3rd, 2018 7 Pages
The case of Spa is no different than other business decisions. It is required to take appropriate technique for business valuation and competitor analysis. The business incorporates discounted cash flow, relative valuation, and contingent claim valuation techniques as standard practices for valuing business worth. The business valuation is significantly different from equity valuing techniques. It is also noted that the traditional evaluations of business are performed through review of financial statements while contemporary techniques are based on future options models.
Valuation Techniques:
There are various techniques used to value the organization's financial and business worth. The most common techniques used to value the business are based on accounting and financial principles. The discounted cash flow, Asset based, and relative valuation are useful techniques. The valuations of an organization's worth are performed according to a pre-determined framework best suitable for assessments. Similarly the techniques are not only different in their approach but the results also very on the basis of methodology…
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