This is an exercise related to business valuation which should be completed by all students. You have been asked to consult to an entrepreneur who is interested in selling her photography business. Your task is to calculate the valuation of the firm using the five methods we learned earlier in the semester. Following your calculations, you need to give a recommendation for the price you would set that would be both fair and reasonable (i.e., don’t just pick the highest valuation and use that as the recommended price – that may not be reasonable). Explain your recommendation.
Bottom line – explain how the firm is doing financially and calculate the valuations; then provide a recommended price with an explanation for why you suggest the price that you suggest. For your calculations, you can do this by hand (I want to see your work) and just attach it to the typed up portion of your case response. Please see the attached file for the exercise.
Submit your assignment here by attaching the document through the link provided link (click on the link above).
Guidelines on how to calculate each technique as well as an example is also provided here for your information.