Business Owner Retirement
Here are a three very interesting statistics:
If you are going to do any kind of planning - whether it is regular business planning or financial planning involving your business - you should have some idea what your business is worth.
While rules of thumb can get you in trouble when it comes to business valuations, the most common metric for selling a business is "the multiple." Sometimes, people value a business based on a multiple on the annual sales, but usually, the multiple is based on EBITDA (earnings before income taxes, depreciation, and amortization). Generally speaking, the larger your company's EBITDA, the greater the multiple that someone would be willing to pay you for it.
Of course, the valuation of your business is based on more than just earnings. Buyers are going to want to know things like:
Knowing the true value of your business is critical to proper business planning and achieving personal goals. Through our valuation process, we can help answer the questions that will lead you to make informed decisions for your future ... Let us show you how!