What's my business worth?
Try not to roll your eyes when you read this, but here's the answer: Whatever someone is willing to pay.
Any discussion with regards to the sale of your business begins with the assumption that someone would like to buy it. Some people feel “Whatever someone is willing to pay.” is a crass or gimmick answer. It isn't. It's actually the starting point for understanding the entire process for increasing how your business is valued. It's been my experience that the majority of businesses marketed for sale, never sell. I'm sure you've seen businesses that just "closed the doors." Why don't those businesses sell? Because the buyers' perception of value for the business is nowhere close to what the seller is expecting. And, by the time the owner reaches reality, it's too late. Obviously, you could just lower the price until someone finally agrees to buys your business. I'm here because that's not the only solution.
Why do we begin with determining how a buyer is going to value your business?
Because a destination circled on a map is only useful if you know where you are. Once we have an idea of how your business will be valued, we can start the process of improving the business and making it more desirable to the market. Likewise, we will be a to make a determination of if, how, and when the ownership will be prepared for exit. Is the goal for exit some lump sum value, an income stream for a particular amount of time, an expectation of continuation for the current employees, or a date you've circled on the calendar? Each of those destinations is reached by first determining where we are.