If you are like many business owners, you have likely asked yourself the following at least once: “Just how much is my business worth?” It’s a good question and one that is worth knowing at least a ballpark estimate. Whether you are currently planning on selling your business or not, being armed with the knowledge of knowing exactly ‘how much is my business worth to sell’ can be powerful. That’s why Benchmark Business Sales & Valuations works directly with business owners to help them find out once and for all: “What is my business worth?”
Major Factors that Determine a Business’s Worth
Accurate business valuation is one of trickiest parts of ownership, as it is more of an art than an exact science. Your emotional attachment to your business, while perfectly reasonable, could also cloud your judgment regarding its true worth. Furthermore, without any points of reference, any figure you come up with is merely imaginary and may be potentially unrealistic as a result.
To discover the true answer to the question of “how much is my business worth” you need to consider a few key factors that go into measuring the economic benefits that a business is providing its owner. These include asset valuation, liquidation value, income capitalisation and multiple, as well as so-called “rules of thumb”, or the selling price of other similar businesses. Another thing to consider is the issue of risk. Nearly all enterprises carry with them some degree of risk regarding ownership, so understanding this as well can be essential.
While you can use online calculators to get a very rough estimate of your business’s worth, these may not reveal the complete story. That is why it’s often useful to consult a corporate advisory or business broker to dig deeper. By evaluating the various components that figure into business valuation, and how these potentially interrelate, a business broker can better help you determine what you could reasonably expect to sell your business for if you decided to put it on the market today.
Want to Know “What is my Business Worth?” Find out Today!
Since 1999, Benchmark Business Sales & Valuations has helped many entrepreneurs discover the potential worth of their businesses. This track record has given us extensive data to work with regarding business transactions across Australia. With our industry-leading knowledge and dedication to providing you with the very best service, we hope that we will be the very first place you turn for business valuation you can trust.
Our site provides sales data tables that puts immediate information at your fingertips, but to get the bigger picture, it helps to speak directly with a member of our highly knowledgeable staff. Armed with the true reflection of your business’s worth, you will then have the data you need to figure out whether now is a good time to sell, or if you should invest more into upgrades or other improvements before considering an exit strategy.
Stop guessing about what your business may be worth and start finding answers that will help you make better business decisions. Contact Benchmark Business Sales & Valuations today to learn more.