
How Can You Know the Value of Your Business?
Knowing how much your business is worth is important for a number of reasons, including: You are considering a corporate transaction. You are engaging in estate planning. You are insuring your business. Either way, business valuation can be challenging, especially when much of your company consists of illiquid assets. There are a number of ways to value your business. Here are three ways to know what your company is worth: Earnings Assets Cash flow Earnings Method The value of your business could depend on how much money you make. A prospective buyer would be willing to pay for future earnings. They would use a certain multiple of your earnings or revenues as a guide for how much to pay. Buyers would not just be looking at what you made last…