Seven Essential Steps to Valuing a Company: Insights from the Hospitality Industry

Valuing a company comprehensively involves a detailed, step-by-step approach that encompasses both quantitative analysis and qualitative insights.

An older woman uses a calculator and looks at paperwork on her kitchen table.
(Image credit: Getty Images)

Valuing a company is a critical process that requires a meticulous approach to accurately determine its worth. Whether it's for mergers and acquisitions, investment analysis or partnership deals, understanding the value of a business is crucial. My company, a seasoned player in the hospitality industry with over 100 hotels and resorts under its management, follows a robust methodology to ensure that each property is valued correctly before any transaction. Here are seven steps to follow when valuing a company, exemplified through our practices in the hospitality sector.

Preparation and planning

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%
https://cdn.mos.cms.futurecdn.net/hwgJ7osrMtUWhk5koeVme7-200-80.png

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

Sign up
Disclaimer

The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation. 

Stephen Nalley
Founder & CEO

Stephen Nalley is the Founder & CEO of Black Briar Advisors.