Choose a valuation method by the question and evidence

The three principal business valuation approaches are market, income, and asset-based. Market methods compare priced interests, income methods convert expected benefits into a present indication, and asset methods examine assets net of liabilities. No approach is automatically best, and this guide is not a company valuation. Start by defining the interest, valuation date, intended use, basis of value, and evidence available; then test whether each approach's inputs are reliable and comparable. Compare the market, income, and asset approaches by purpose, inputs, failure modes, and the records a private-company owner should verify…