25 Factors Affecting Business Valuation

Industry benchmarks (averages)

The entrepreneurial valuator with relevant experience can best determine if industry benchmarks are applicable for a particular situation. Data that is most easily found is for the multi-million dollar players in an industry. However, data gathered from large industry players is seldom applicable to small players. An entrepreneurial valuator is well suited to understand this. Due to the simple fact that there is just not enough like for like data available.

We are more likely to rate the intangible assets using the 5 senses

• Sight: Sight is the most important sense for humans, and it can be used to assess the quality of products, the appearance of packaging, and the overall visual appeal of a business.
• Hearing: Hearing can be used to assess the quality of customer service, the noise level of a workplace, and the overall sound of a product.
• Smell: Smell can be used to assess the quality of food, the freshness of flowers, and the overall aroma of a store.
• Taste: Taste can be used to assess the quality of food, the sweetness of a drink, and the overall flavor of a product.
• Touch: Touch can be used to assess the quality of materials, the texture of fabrics, and the overall feel of a product.