First Advisor

Lihong Qian

Date of Award


Document Type


Degree Name

Bachelor of Science (B.S.) in Business Administration: Finance and University Honors


Business Administration


Small business -- Valuation -- Study and teaching (Higher), Small business -- Finance, Business enterprises -- Valuation




This paper's purpose is to review existing literature from an undergraduate perspective on the process of small business valuation and the differences between the textbook valuation methods covered in typical undergraduate and graduate finance courses. Potential investors or buyers likely have more financial expertise and access to resources, so this information is largely geared towards owners of businesses with less than 20 employees who are interested in valuing their own business. To that end, a simple model for determining the discount rate in DCF analysis is proposed. A live example of adjustments from textbook methods also provides evidence of the need for further work in this area.


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