A recent article on Inc.com, “How to Find Out What Your Business Is Really Worth,” provides advice from a professional who has owned multiple businesses to small business owners, who might be wondering how much their businesses are worth. He discusses his own experiences as a business owner and wondering what his business was worth; essentially, he was guessing at what his business was worth, only to realize that he was way off. He suggests:
Meeting with merger and acquisition (M&A) professionals who buy and sell businesses within your industry
Searching databases that hold historical information about businesses that have sold recently and determine industry norms
Reading M&A firm newsletters that describe the multiples being paid on M&A deals
Looking at online business marketplaces, such as Bizbuysell.com, through which you can search for similar businesses in your industry that are for sale
While all of this can be helpful in getting a ballpark figure for your business’s value, the only way to really know the value of your business is to get an appraisal from a firm that specializes in business valuations and is compliant with the standards and guidelines of USPAP.
Present Value LLC is a nationwide appraisal and advisory company that provides a range of professional services such as Certified Machinery and Equipment Appraisals, Inventory Appraisals, Asset Verification Services, Business Valuations, and Real Estate Appraisals. Contact us today!
