Business and Money Tips

Note: The author Andy Ng is a CA (Chartered Accountant) and a member with the Institute of Singapore Chartered Accountants (ISCA) since 1988 The other day I received a call from a friend who wants to know how much should his friend asked for when another business wants to buy over his business.  This subject is called Business Valuation, and it is taught in MBA schools.  Today in just 7 minutes, you an be an expert on this subject.  A business is worth what someone is willing (and able) to pay for it.  So the only true way to value your business is to put it on the open market and see what offers you receive. Having said that, there are some common methods to value your business which give you a starting point for negotiations and a rough idea as to what your business is worth. What’s more, knowing how to value your business can help you understand where the value lies and maximise your business’ worth. The most common method is based PE or Price Earning Approach.  This