How can I value a business with higher than normal asset base?
You can use the Multiple of Discretionary Earnings business valuation method available on the Earnings Multiple tab in ValuAdder. In addition to applying the 14 key business valuation criteria, the Multiple of Discretionary Earnings method lets you directly account for the excess or non-operating business assets, such as the business real estate. One way to do this is to appraise the business real estate separately, adjust the income statements for the fair market rent expense of leasing the premises, and factor the real estate into the business valuation as a non-operating business asset. See how to recast financial statements to prepare for your business valuation.
