What are the factors that affect the valuation of a business? • Value is specific in Point of time • Value principally depends on the ability of the business to generate discretionary cash flow • Value also depends greatly on the market forces • Principle of Risk and Return • Principle of Reasonableness and Reconciliation of Value • Value is influenced by Underlying Net Tangible Assets • Value is influenced by Liquidity • The Value of Minority Interest is less than the Value of a Controlling Interest.
