In a company’s valuation, Price Earning(P/E) multiples are applied to earnings based on the maintainable profits before tax less minority interest(gross). In determining the PE multiples, it is equally important to ensure that the following factors should also be taken into consideration:-

net tangible asset value;
quality of management;
nature of products/services;
track record;
growth prospects;
prospective dividend yield;
prospective tax expense […]

(A) Basic Principles when a limited company takes over another business
(1) It can satisfies the purchase consideration by giving

cash,
shares or debentures
assuming the trade liabilities
any combination of cash, shares/debentures/assuming trade liabilities

(2)  the assets acquired are often different from the values shown in the vendor business’s […]

When a partnership is taken over by a limited company, the partnership is considered as dissolved and the business is sold as a going concern to the limited company. Accounting entries in the Purchaser’s book ( limited company) is similar to the sole trader’s business.
Refer to Part 1 re: purchase of a sole-trader business.As […]

This type of purchase of business is usually a mere “conversion” of a sole-proprietorship to a limited company where the seller (sole-proprietor) will be allotted shares in the Limited Company.

Accounting for Purchase of a soleproprietorship business:
In the Purchaser’s books, the following steps need to be taken:

(a) transfer all assets & liabilities […]