Excess Earnings Method - Business Valuation

The video explains an approach to valuing a business by combining asset-based valuation with projected cash flows from intangible assets. It details how to estimate returns from tangible and intangible assets, using capitalization rates to determine their value. The excess earnings method is highlighted, particularly for startups reliant on intellectual property. An alternative approach using normalized returns is also discussed.

Explain the process of attributing earnings to goodwill.

What is the excess earnings method and how is it useful for startups?