Wam Times

September 8, 2022

Business

Business Valuation Methods You Should be Aware Of!

by Roy Williamson on

Business valuation is crucial to determine the worth of your business. Professionals use various approaches for business evaluations. To choose the best method for your business, it is essential to seek the help of a business valuation consultant. Some of the commonly used approaches for evaluating the worth of your business are as follows:

  • Market Value Valuation Method

It is the most subjective method for calculating the worth of a business establishment. This approach uses the comparison with similar companies to determine the value.

This concept is suitable for businesses with access to market information about their competitors. It is difficult for sole proprietorship businesses as the availability of comparative data of similar establishments is rare.

  • Asset-Based Valuation Method

This valuation method determines your business’s worth by calculating the total net asset value without adding the liabilities.

  • ROI-Based Valuation Method

This valuation approach calculates the value of your business based on your company’s profit and the type of return on investment (ROI) to be gained by a potential investor after considering your business.

  • Discounted Cash Flow (DCF) Valuation Method

The discounted cash flow valuation approach is also known as the income method. It calculates the worth of a business based on its potential cash flow after adjusting its current value. It is suitable for businesses with inconsistent profits. This method is detail-oriented and must be done with utmost care to achieve accurate outcomes.

  • Capitalization of Earnings Valuation Method

This approach calculates the potential of a business based on its cash flow, annual investment return, and expected worth.

It is suitable for businesses with consistent profit. It follows that a business’s ability to produce profit depends on its current worth.

  • Multiples of Earnings Valuation Method

This method is similar to the capitalization of earnings valuation approach. It also calculates the worth of a business based on its ability to generate profit in the future. It is also referred to as the time revenue method. The method is generally preferred for small businesses. It decides a business’s highest potential by assigning a multiplier to its present revenue. 

  • Book Value Valuation Method

The book value method generates the worth of your business at a given point in time by assessing the company’s balance sheet.

The value of the company’s equity (difference of asset and liability) is calculated by the balance sheet, which is the worth of your company. This is suitable for those businesses that generate less profit but hold significant assets.

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Travel

How To Charter A Private Jet: A Step By Step Guide

by Jon Rohan on

If you want to travel in style and luxury, chartering a private jet may be the answer. With a wide selection of more than 7,000 aircraft worldwide, there is no need to be a chartering expert to plan a memorable trip. There are many benefits of private plane charter, including increased flexibility, convenience, and budget. You can also customize your itinerary to meet your specific needs, whether they are business-related or personal.

On demand jet charter gives you access to more than 7,000 aircraft worldwide

On demand jet charter is a flexible and cost-efficient way to fly when you have a short notice or limited budget. This service gives you access to more than 7,000 aircraft worldwide and is ideal for those who fly less than 25 hours a year or don’t want to book a private jet. Many jet card members, fractional owners, and whole aircraft owners use this service to guarantee aircraft availability.

You can choose the type of aircraft that best suits your needs. Choose from a variety of aircraft, from single-engine piston aircraft to large bizliners (commercial airplanes outfitted as private jets). Some popular aircraft for charter include Boeing Business Jets and Airbus Corporate Jets. Charter operators provide all flight services, including cabin crew, and you pay only for the hours you fly. You can also choose to pay by the flight hour or the wait time between outbound and inbound legs.

It is easier than booking a commercial flight

One of the advantages of a private jet is that you do not have to go through security screenings or go through an airport. Also, you can communicate with the flight crew, which can accommodate your late arrival or changes in your schedule. A private jet also provides more privacy and comfort than a commercial flight. There are also no baggage limitations. However, it is not always possible to charter a private jet to your desired destination.

Prices for charter flights vary according to aircraft size, speed, and fuel. Small turboprop planes cost less per hour, while midsize and heavy jets can run into the five-figure range. In addition, you don’t have to sign a long-term contract with the charter company. Many companies even offer jet cards that let you load up a specific number of flight hours for a pre-determined price, then spend the money whenever you need to travel. Popular charter companies include Blade, Victor, and Wheels Up.

It is more economical than flying in a commuter plane

When comparing the cost of flying by commercial airline with the cost of a private jet, the former is more affordable. For a start, the commercial airlines are limited by their hub and spoke model, which means they often require a layover in order to reach smaller destinations. Charter flights, on the other hand, can take passengers where they need to go, whenever they want to. This is particularly important when making multiple destination trips.

A private jet is more affordable than a commuter plane, especially if you take empty legs when you return. Most private jets return to their base empty after one trip, and many operators offer these flights at a discounted rate. While an empty leg flight may cost $50 more than a commercial flight, you will also avoid the cost of renting an apartment in the destination city. Likewise, you will save money on the cost of renting accommodation when you travel by private jet. Some charter platforms have been able to make their prices more competitive by partnering with airlines.

It allows you to create a bespoke travel itinerary

With on demand charter, you are able to create your own bespoke travel itinerary, and the more information you provide, the better your options will be. To get started, you need to specify the date(s) you wish to travel, the number of passengers, and the destination. Make sure to provide the start and end locations, and if possible, the actual airports of those destinations. This will enable you to receive a more accurate quote.

When choosing your aircraft, the choice of aircraft is very important. Remember that smaller aircraft don’t have bathrooms, so you’ll need to schedule bathroom breaks at frequent intervals along the route. Charter flights generally follow a more direct path, but it will take more planning than commercial flights. Make sure you have the appropriate time to takeoff and land, and add up to 10-15% of your average speed to account for the time it takes to reach a destination.

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