When buying or selling a business it is helpful and sometimes required by the lender to obtain a business valuation.  Business valuation theory promulgates three basic approaches to value.

Asset Based Approach: A general way of determining a value indication of a business' assets and/or equity using one or more methods based directly on the value of the assets of the business less liabilities.

Income Approach: A general way of determining a value indication of a business' assets and/or equity using one or more methods wherein a value is determined by converting anticipated benefits.

Market Approach: A general way of determining a value indication of a business's assets and/or equity using one or more methods that compares the subject to similar investments that have been sold.

The various approaches are interrelated, and each involves the gathering and analysis of sales, activity, and value data in relation to the company being analyzed.  From the analysis, the appraiser derives separate indications of value for the company being valued.  One or more approaches may be used, depending on their applicability to the particular assignment.

To complete the valuation process, the appraiser integrates the information drawn from the market research and analysis of data and from the application of valuation techniques to form a conclusion. This conclusion may be an estimate of value or a range in which the value may fall.  An effective integration depends on an appraiser's skill, experience, and judgment.

The WSR Group's principals have built countless valuation models and evaluated thousands of businesses giving them the required experience to support a proper valuation method.  All reports prepared in accordnace with the Statement on Standards for Valuation Services (SSVS) of the American Institute of Certified Public Accountants.