Valuing a Business

You want to sell your business. This is so you can have more money for retirement or your next project. There are different ways to figure out how much your business is worth.

One way is to count up the value of everything the business owns. This includes all equipment and inventory. Then, subtract any debts or liabilities. The value of the business’s balance sheet is at least a starting point for determining the business’s worth. But the business is probably worth a lot more than its net assets.

Another way to figure out how much your business is worth is by looking at its revenue. How much does the business generate in annual sales? Calculate that and determine, through a stockbroker or a business broker, how much a typical business in your industry might be worth for a certain level of sales.