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Which techniques of valuation would be better apprising a mid-sized closely held private limited company for sell when the company is in business of providing professional services totally relying upon a qualified owner only and the owner is going to be discontinued after sell ?
Discounted Cash Flow method is the best suitable model where discount (Weghted Average Cost of Capial) is calculated using Capital Asset Pricing Model (CAPM). However it would be better to add some premium to the discount rate (which will decrease the value) in case average Beta of listed companies is taken for calculation of cost of equity
An accouning person should know how to check and balance the cash flow method. It is then, how he will appraise the CAPEX and other properties to add as additional asset.
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