Finding out the worth of your business is the first step toward preparing it for a sale. Transworld Business Advisors offers a free business valuation, which can shine a light on where your business stands. Your business broker will assess the following to find the value:
- Net profit
- Business model
- Growth trend
- Company assets
- Customer retention and loyalty
- Age of business
There are two commonly used benchmarks to calculate a business’s worth: Compare the sale price of similar business to 1) your company’s annual sales resulting in a percentage of sold price vs sales or 2) annual recasted profits resulting in a multiple of earnings. Our business value calculator program can then generate a report that can be reviewed.
It is impossible to do a thorough and accurate business valuation without keeping in mind the current market, its trends, and all other assets owned by the business. For instance, trademarks, furniture, commercial real estate, patented technology, computers, and other equipment. In fact, even intangible assets like public perception and public brand awareness come into play when ultimately determining the value of your business. To properly give a value to these intangible assets, you should speak to your business broker, who has experience in this area.
A business broker, on top of helping you find the value of your business, can help you maximize its worth. For one, business brokers know what buyers are willing to pay, what they are looking for, and how they like the information presented to them. Transworld brokers can help you determine what your company is worth, and then they can help you sell it to the best possible buyer.
Hi, we’re Maine Business Advisors and we focus on assisting business owners in the buying, building and selling of businesses. Whether you are looking to retire or just getting started, we can help.