Better Business 101

Determining the Value of Your Business
A business evaluation (also known as valuation) is a process that you should go through as part of your strategic plan that will help you maximize the value of the business you are selling. Unlike real estate valuations that are fairly straightforward due to the availability of information on comparable transactions, assessed values, etc., business valuations have many more variables and components to determine their value. The five major components that influence the value of a business are:
  • Financials
  • Industry
  • Outside influences
  • Structure of the business
  • Benchmarking
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Recommended Book Assessing the value of your business can be a confusing and complicated task. Yet, it is an essential part of the process when evaluating assets in settlements and bequests, determining taxes, and buying or selling a business. With many baby boomers looking to sell or bequeath their small businesses at retirement...
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