The headline U.S. unemployment rate fell from 6.7% at the end of December 2020 to 3.9% in December 2021, marking the biggest one-year improvement in history. While many workers took advantage of this strong rebound in the job market, companies large and small have been struggling with labor shortages.
Unlike a new business, an existing business will likely have a product or service that is familiar to consumers, suppliers, lenders, and employees. Similarly, the business will, hopefully, have established "goodwill".
The basic concept of valuation is to determine a justifiable dollar value or price for a total or partial interest in your closely held business. Because valuing a business is so important, you should be very careful when selecting an appraiser.