Throughout the course of owning a business, every owner will typically think: how much can I sell my business for? When you make the decision to sell your business, the first thing that comes to mind is how much market value it has. Business worth comes from a variety of factors, so it’s important to know what these are and how they contribute to your business’s value.
From learning what the estimated worth of your tangible assets is to figuring out how you might increase the value of your business before finally selling, the team at Advanced Business Brokers can help you through the whole process.
Determining a fair market value for your business relies on a variety of factors. Some of these include, but are not limited to:
All of these can heavily impact your business’s worth. A business that outputs much larger volumes of products or services will have higher annual sales. This inevitably has a large impact on how much the business could be worth to future buyers as they try to determine current operational worth vs. future cash flows.
Every business owner who might be interested in buying will approach the value of your business in this way, both looking at present and future profitability.
So, after looking at considerations for how much someone might value your business, how do you determine what it could potentially be worth before listing it for potential buyers?
There are a variety of valuation methods that both large and small businesses use to determine present value. Some of these valuation methods include:
Although there are different options for a reasonable valuation of your business, a team like Advanced Business Brokers can help determine which works best for you. By looking at your total assets, size of your businesses, growth trends, total liabilities, and a variety of other factors, we can walk you through the process to get a great estimate of your business’s worth.
The easiest way to determine what your business could be worth and how much you should ask for it comes by working with a team of professional business brokers. Advanced Business Brokers provides competitive advantages to selling your business through quality analysis, collaboration, and experience that you can count on. Small business owners, mid-sized businesses, and larger businesses alike can get help selling their business with ABB.
From start to finish, our team walks you through the sales process. Reach out today to learn more about your business’s present day values and how to plan for a better sale!
If you’re thinking about selling your business and don’t know where to start, consider speaking with our team here at Advanced Business Brokers. We specialize in brokering and advising exit plan strategies for various sizes/sectors of businesses.