How do I calculate the value of my business?
There are several ways to value your business and valuation experts often incorporate more than one method. From earnings multiples to discounted cash flow, the best method largely depends on the industry.
You can go through a broker, an accountant, or other relevant professionals to help you value your business - or you can do it yourself using ValueRight.
Can I get a realistic value for my business through ValueRight?
Yes! If you have the right information about your business, you can get a very accurate valuation. The sector that a business is in and the current market conditions are two among many factors that can be accurately gauged based on industry-standard benchmarks.
Can I ask a professional advisor to do this for me?
Business brokers, accountants, and other professional advisors with experience in valuing businesses should be able to help you through the process. Ideally find someone who has experience with selling businesses similar to your own.
What documents do you need?
You will need access to at least a full year's profit and loss statements (P&L) and owner salary and benefit information. You will also need the value of the inventory which will be included in the valuation, alongside any other assets. Your accountant will be able to provide this information for you.
For a more accurate valuation, you can add the last 3 years of financial information and ValueRight will give a more accurate figure as it will take into consideration the growth of the business over the years.
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.