Transworld of Atlanta-North’s Business Valuation Professionals Are Ready to Help
How Much Is A Business Worth?
Investment value or strategic value
Fair market value
Why Should You Know the Value of Your Business?
Selling a business
Buying a business
Estate, Gift and Tax planning
Banks Financing Requirement
Personal Financial Planning
Fair Market Value
Multiple Of Your Past Earnings
What Is The Multiple?
Okay, Now The Multiples.
Can all that mean nothing? Yes!
Here’s A Summary Of Business Valuation. Your business is worth the following:
A multiple of earnings compared to like businesses (gross sales or owners benefit times an industry multiple).
NET PROFIT CAPITALIZATION
A capitalization of the net profit (Not Owners Benefit…you cannot capitalize owners benefit!) 20% to 50% or a simple multiple of owner benefit.
And if your business makes little or no money – Asset value is the only value. (Goodwill + Inventory + Equipment +etc.) Either sold as a whole or liquidated over time.
How Do Transworld Atlanta-North Advisors Narrow the Value Down
Remember, many other things can affect the value of your company. Location, size, competition, growth rates, industry trends, quality of books, ease of transfer, control issues, time you have to sell, terms of the sale, leverage, what business broker you hire.
Once again, this is an oversimplification of a very complicated subject. If you need a valuation, you should consult Transworld North Atlanta, a valuation specialist, or someone familiar with business sales. Now that you know how businesses are valued, perhaps you can concentrate on increasing profits and your eventual profit in your business sale.