It should be clear that a single universal method of valuation is needed when considering the purchase of a private company.

Question

Quizplus · Accepted Answer

There is no single universal method of valuation that is applicable in all cases when considering the purchase of a private company. The valuation method used will depend on various factors such as the industry, size of the company, market conditions, future growth potential, and the buyer's investment objectives. Different methods like discounted cash flow, comparable company analysis, and precedent transactions analysis can be used to determine a fair value.

It Should Be Clear That a Single Universal Method of Valuation