What is my business Worth?

Valuating a business, that is deciding what it's worth, is some science and some art.  Sometimes it is very difficult for the owner to get to a real number because of their closeness to the business or their misunderstanding of how buyers perceive value different than sellers do.  Sellers are very proud of the hard work they have put into a business and buyers are interested in the current and future potential a business has to offer them.

"Multiples" is a word that many use to evaluate a business based on monthly revenue.  Example - if the multiple is "1" and the monthly revenue is $19,000 then the valuation would be $19,000.  If that same company had a multiple of 1.5 then the valuation would be $28,500.  Multiples sometimes do not take into account assets such as vehicles, real property, equipment, and the quality of the existing customers.  In the end those things may or may not play a role in the valuation of a business.

Things to remember when selling your business:

• Research other businesses sold - clickjoin.com may have information to help

• Separate yourself from the business, be the buyer in this process and think about it from their side.

• Decide what part if not all of the business you are selling.  It can be easier to sell only the customers and not the whole business, or only the assets and not the business.  This has a big impact on tax.  Sometimes it's better to only sell the customers

• Will you finance part of it or request cash payment up front.

• Get more than one offer before making a decision.

• Car Wash = 1.5
• Auto Repair = 3.5
• Carpet Cleaning = 1.8
• Maid Services = 1
• Contractors = variable
• Restaurants = variable
• Retail = 3
• Plumbers = 1.2
• Exterminators = 1.7

* Assets add Value !