It's important to recognize that the things you love about your business are not necessarily the same things that a buyer will love. You may appreciate a lot of the intangible benefits you get from ... |
Regardless of the state of the economy and of your industry, there are any number of things that you can do to improve your business's appeal to buyers before the sale. The main problem is that a lot ... |
One thing that virtually all small business owners do to "dress up" their business before a sale is to recast historical financial statements for the last three to five years, and draw up projected ... |
So, you've examined your company's historical financial statements, thought carefully about your prospects for future growth, and perhaps had your accountant |
At a minimum, your company should be valued at the sum of the value of its easily salable parts. Two commonly used business valuation methods look primarily at the value of your hard assets. |
Most small companies are valued using one or more of the following methods, which take into account the company's historical earning power. In contrast to the |
The excess earnings method of valuing a small business takes both assets and historical earnings into consideration, and is the method prescribed by the IRS for estate and gift tax situations when ... |
Several business valuation methods are based primarily on the market price for similar businesses at a given point in time. Business brokers and mergers and acquisition specialists are more likely to ... |
Theoretically, anyone purchasing a small business is interested only in the business's future. Therefore, a valuation based on the company's expected earnings, discounted back to arrive at their |
Our discussion of business valuation methods assumes that you're attempting to put a value on the entire business in anticipation of sale. But what if you ... |
