3 Ways to Value a Business for Sale

"ENTREPRENEURS READY TO SELL MUST DECIDE WHETHER AN ASSET, INCOME OR MARKET-VALUATION APPROACH MAKES THE MOST SENSE FOR THEIR BUSINESS.

Although there are all sorts of reasons you might need to estimate the value of your small business—such as a divorce or a dispute over estate or gift taxation—the most typical one is when you're considering selling your company.

Here are the three most common ways professionals calculate how much a business is worth:

1. ASSET APPROACH:

This method basically determines a business’ value by adding up the sum of its many parts. This is “the most predictable” of the three main valuation models, explains Marty Zwilling, founder and CEO of Fountain Hills, Arizona-based Startup Professionals Inc., "since any good accountant can add up all the assets, depreciate them, and come up with a number.”"

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3 Ways to Value a Business for Sale:

For additional information regarding Florida business sales, acquisitions and valuations, please contact Eric J. Gall at info@buysellflbiz.com or 239.738.6227. Also, visit our Florida Business Exchange website at www.fbxbrokers.com and my personal website at www.buysellflbiz.com.