Continue paper | FIN 317 – Financing Entrepreneurships | Strayer University
1. Track record of financial performance: A business must have consistent profitability over several years to ensure that the value it is assessed at accurately reflects its worth and potential.
2. Market position: The market in which the business operates should be analyzed thoroughly, looking at the competitive landscape, customer base, and opportunities for growth.
3. Business assets: It’s important to consider all physical assets such as property, equipment, or inventory when valuing a business through an equity approach since they are used to generate revenue and cash flow.
4. Brand recognition: A recognizable brand name can add considerable value to a company’s stock price by increasing consumer confidence in the product or service being sold.
5. Management expertise: The quality of leadership is also essential for any successful business; investors want sound management practices in place so that their capital will be well managed and yield returns on investment over time.