View Full Version : How to calculate what a business is worth?
ktfearon
Jun 13, 2008, 04:36 PM
I have a small business doing Construction Cost Estimating. How would I determine what the business is worth? I am the only employee, and I have only a few small assets and no inventory as I provide only a service. If I were to sell the business, how do I know what it might be worth?
MaggieMouse
Jun 27, 2008, 02:42 PM
It depends on how much money you have been making as a business. You need to look at your income statement to figure that out. Also, you may have some goodwill-it's intangible-basically means how much customers like to use your service, in oppose to your competitors.
Fr_Chuck
Jun 27, 2008, 02:44 PM
Also do you have regular accounts, companies that normally use your service. The problem is that there is no for sure they will use the person who buys your business.
ktfearon
Jun 27, 2008, 03:18 PM
We are basically a service to a select group of clients. So what we would be trying to determine is the value of the goodwill I guess. The firm is established, but I am really the only person in the business, and so if the firm was sold without me, there is no guarantee that the clients would go too. Does that mean that the business is essentially worth just its assets, or do we assign a value since the name has goodwill associated?
Tinter25
Nov 19, 2008, 11:29 PM
I would first calculate yourtotal income, customers,what's your rep. what do you have in the company and how much to break even getting out? And how is the current market in the area your business is located?? Then male a decision.