The video explains how the value of a business is calculated using a health and value assessment. Here’s a breakdown of the key points:
- Health and Value Assessment Report:
- When you complete the health and value assessment for your business, you receive a detailed report. This report is crucial for understanding the valuation process.
- Finding the Calculation Method:
- The methodology used to calculate the value of your business is detailed on the second to last page (page 24) of the assessment report. This page provides an overview of the measurement tool used, explains how multiples are determined, and describes the criteria for choosing a specific multiple.
- Referencing the Report:
- To evaluate your business’s value accurately, you should refer back to your health and value assessment report. This document contains essential data and explanations that help you understand the valuation.
- Consulting an Advisor:
- If you are unable to locate your health and value assessment or if you have questions about the contents and findings, it’s recommended that you consult with your advisor. They can provide further insights and clarifications on how the value was calculated.
This approach ensures that business owners can understand and verify the valuation of their business based on comprehensive and systematic assessments.