How to Valuate Your Business?

June 27, 2017 by OSYB Staff

There may come a time when you want to sell your business, pursue another venture or retire.  You may want to sell your business to the next generation, to an employee, or even to a competitor.  Whatever you decide to do, you need to be able to valuate your business.   Start with an understanding of the key value drivers of your company.  Some samples of key value drivers:

• Revenue growth
• Market share
• Customer base
• Management team

“Key value drivers lead to value because value drivers assist investors in their assessment of risk and, all else being equal, lower risk companies will receive a higher valuation and vice versa. A solid understanding of your company’s value drivers will assist you in understanding the value of your company to the market.”

If selling is a consideration, see what Henry+Horne recommends you should know:  What’s my business worth? The age old question