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How To Determine The Value Of A Small Business 

YoungUpstarts

Intangible property means trademarks, patents, copyrights, software and even reputation and trust of customers. So, unlike the assets and property, liabilities mean the things that cost the business money. There are two most common approaches which are used to figure the value of a business.

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5 Financial Concepts Every Startup Founder Should Know

The Startup Magazine

Most financial valuation formulas value an asset by discounting the asset using the cost of capital (interest rate) to the present day. When a company acquires another business, they often pay a lot more than the book value of the company. Compared to Accounting, Finance is ruthlessly forward looking.

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