You work tirelessly to manage and grow your business, but have you ever wondered what your business is actually worth?
Value has many points of view, and some things have more value to the owner than they do to the market, so to ascertain true market value for your business, unbiased calculations are necessary.
Business valuations often refer to ‘the multiple’ – essentially, this is the multiple of operating profit that the value or sales price represents. For example, a business making $100K per year that has a value multiple of 2 times would be worth $200K.
How do you find your multiple?
Your multiple can be calculated by rating your business operation in 10 key areas.
Use the table in our ‘key factors that make your business valuable’ toolkit.
Key factors that make your business valuable
Are you happy with your current valuation?
We have helped many business owners work through a business value indicator process and worked with them on strategies to help them raise the value.
Even if you are not thinking of selling your business now or in the near future, maximising the value of your business for consecutive years will ensure you can demand top dollar should you ever decide to sell.