Valuing Your Business

As a business owner gets ready to place his or her company on the market, calculating the proper value of the company is critical.  It’s especially important to get it right at the beginning of the process so buyer prospects and valuable time aren’t lost.

In practice, a proper valuation is determined by a number of factors such as a company’s sales, earnings, performance, market outlook, staff, management and assets. And it’s also impacted by intangible assets like the company’s brand, reputation and goodwill. Seller Discretionary Earnings is the most common approach Cindy uses to value small to mid-sized businesses, as it provides a real assessment of the business’s value to a new owner.

One of Cindy’s services is establishing a value for your business, based on information she obtains from you about your business and her assessment of all of the factors mentioned above. This foundational value is then fine-tuned with an understanding of the marketplace, financing options, potential sales agreement structures and other factors.