Page 85 of 141 3. Net Income. As noted, the valuator used a 3 year average for forecasted net income. In summary, the appraiser has forecasted for valuation purposes, a net sales base of $6,769,667 and net income of $939,042. As mentioned earlier, this forecast, including the notes, will be used by a variety of valuation methods across different valuation approaches and will be presented as needed in the following sections regarding the specific valuation calculations. 5.0 VALUATION ANALYSIS AND CALCULATIONS As discussed previously in Section 2.0 Valuation Methodologies, the three approaches of valuation to be considered in a business valuation are (1) the Market Approach, (2) the Income Approach, and (3) the asset‐based approach. The narrative that follows discusses the valuation methods employed within each approach.
