How do I calculate the value of my business?
Calculating the value of your business can be done in a few ways. You will need to add up the value of your assets and determine the amount of revenue the business makes. One of the more relevant ways to calculate the value of your business is to use earnings multiples or the price to earnings (P/E) ratio.
You can go through a broker, an accountant or other professionals to help in valuing your business or you can do it yourself using ValueRight.
Can I get a realistic value of my business?
This is very possible as long as you have the right information about your business available. Make sure you take emotion out of it and focus on the facts and figures and you get an accurate and realistic value of your business.
Can I ask an agent to do this for me?
There are agents that have experience in valuing a business and will be able to help you through the process. Make sure that you find someone who has experience with businesses similar to your own.
What documents do you need?
Before starting the valuation of your business, make sure you have access to the owner salary and benefit information, and at least a full year’s profit and loss statement (P&L). As well as this, you should have a full inventory and its value as well as any other assets. If you are unsure of where to find this information, you should contact your accountant.
If you want your valuation to be even more accurate, you should add the last three years of financial information. ValueRight will then be able to assess the growth of your business over the years when calculating the value of your business.
How long does it take to complete the process?
It is a 4-step process and it takes 45 minutes to complete.
What's the cost of ValueRight?
ValueRight is a self-service free of charge to use. At the end of the process, you will receive a PDF file with the Valuation Report.