Part of: Business Succession Planning
Valuing a Closely Held Business: An Overview
Unlike publicly traded companies, closely held businesses don't have a readily available market price, so valuation generally requires a more deliberate process. This is a general, educational overview — not a valuation of any specific business, and not a substitute for a qualified valuation professional.
Common valuation approaches
Income-based approaches (capitalizing or discounting expected future cash flows), market-based approaches (comparing to sales of similar businesses), and asset-based approaches (net asset value) are among the general categories used, often in combination. We do not perform formal business valuations ourselves; where useful, we can coordinate with or refer clients to third-party valuation professionals as part of broader planning conversations.
Why valuation matters for planning
An estimated value — even a preliminary, directional one — can inform succession timing, gifting or estate strategies, insurance needs, and negotiation expectations, well before a formal valuation is commissioned for a transaction.
Key takeaways
- Closely held businesses require a deliberate valuation process, unlike public companies.
- Income-based, market-based, and asset-based approaches are common valuation categories.
- Even a directional estimate can inform broader planning decisions.
More in this series
- Business Succession Planning: Preparing for a Transition
- Family Transition vs. Third-Party Sale: Comparing Paths
Related services
Who this may be relevant for
Frequently asked questions
No. We do not perform formal valuations; where useful, we coordinate with or refer clients to third-party valuation professionals.