Glossary
With over 200 terms in both English and French, our M&A Dictionary is designed to help you better understand the key words and concepts related to the sale oe purchase of a business in Canada.
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Excess Earnings Method
« Back to Glossary IndexCategory: Business Valuation
The Excess Earnings Method is one of the business valuation methods within the Income Approach and is sometimes used to determine the value of a business by isolating and quantifying the earnings that exceed a certain level considered normal or expected. This method is particularly relevant when valuing businesses with significant intangible assets, such as a strong customer base, brand recognition, or proprietary technology.
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