How Much Is My Business Worth?
Valuation is the number one question of all of our sellers when contemplating a sale, and of course, the concern of most buyers when purchasing a company. Unfortunately, there is not an easy answer, and, more confusing, there are probably several answers. Why? Because business valuation is an art not a science. Whether you are planning to sell your business now, or sometime in the future, it is important to know the value of your business in today’s market. I offer reliable and knowledgeable business valuation services.
Valuations are subject to the appraiser’s judgment, skill and quality of methodology. There are several standards of value for businesses:
Fair market value || The price at which the property would change hands between a willing buyer and a willing seller when the former is not under any compulsion to buy and the latter is not under any compulsion to sell, both parties having reasonable knowledge of the relevant facts.
Intrinsic value || Stock values that investors would consider.
Fair value || Legal standards to value. Often used in divorce.
Investment value or strategic value || The value to specific buyers. Could exceed fair market value.
There are three generally accepted approaches to valuing a company:
