As seen in Philadelphia Business Journal
Often accountants are asked "what is my business worth?" What appears to be such a simple question deserves a simple answer. The answer is "it depends." What does it depend on? Primarily it depends on the Company's profitability, its cash flows and expectations for the future.
But other factors need to be considered. Does the Company have proprietary products? Does the Company rely on a small group of customers? How does technology affect the Company? Is the Company reliant on one or two key individuals? Does the Company have trademarks or patents that protect the Company from competitors?
Armed with historical data, reliable expectations for the future and knowledge of the business, the simple question can now be answered.