How do You Value a Business

How To Value A Business

Your accountant may be able to help you value your business, but a business broker (or business transfer agent in the UK) or corporate financier is best qualified to help anyone selling a business.

It’s difficult to say definitively whether business valuation is an art or a science. On the one hand several experienced brokers could give a wide range of values for the same business; on the other, there are recognised valuation formulae to follow.

David Rhodes, a broker for the UK-based Horizon Business Agents, says: "I'd say it's a simple thing to value a business – there are well known criteria.


Selling Your Business

If you’re considering selling your business and it already has a management team in place, then they may well be ideal buyers.

Selling a business to the management that already work in your business is called a management buy out (MBO).  As this management buy out example explains; there can be benefits for the buyer and seller.

A news story caught my eye today that should serve as a cautionary tail to people considering selling their businesses.

North West Business Insider reported that Bolton-based accountancy firm E K Williams Ltd has entered administration with debts of £1.08m (full story here).


Selling A Business? How To Determine Its Value

There comes a time in the lives of many Pennsylvania business owners when they have to consider selling their business. Whether this is a joyous occasion or not, it is important to understand how a business is valued. Otherwise, business owners could be getting less than they deserve.

There are many factors that go into valuing a business, and sometimes the calculations are more important than the actual numerical result itself. One important factor that goes into valuing a business is the profits. Buyers want to know what the expected profits are in the next year and what the expected profits are for the future. Buyers have an expected profit in mind when looking at businesses and, like any other investment, want to get a return on their investment.


Selecting A Good Time To Sell

Q. "I’m thinking of selling my travel agency to another, larger agency. Is now a good time to sell?” A: There is good news for you if you’re interested in selling your business now! It’s a great time to be selling a profitable small to mid-sized business, especially as an acquisition for a larger company or to an entrepreneur looking to get started on their own way to personal wealth. Interest rates are low, the economy is improving and interest in small business ownership is at an all time high. Presumably the other travel agency is interested in your business for strategic reasons. Typically, these type of buyers pay more than purely financially-motivated individual buyers so I would recommend you see if they are truly serious. Also, financing is usually not as big an issue when selling to another, larger company although sellers are frequently asked to take back some stock in the acquiring company as part of the purchase price.


Preparing For Sale | How To Value A Business

Separating yourself from your business – and your business from over-reliance on you – is the challenge that faces all business owners who have built their business, brick by brick.

With the economic downturn affecting businesses across most industries, more business owners, particularly of small-and-medium-sized enterprises, might be tempted to sell their business to get out while they still can. However, this can prove to be a costly mistake. Instead business 'grooming' and succession planning should be the focus.

With many businesses being run by Baby Boomers, many business owners are nearing retirement and thinking about selling. But it's a buyers' market! Here are some factors that can make your business more valuable.


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