A Simple Method to Calculate your Business Value / BuyGrowSell / Business Sales Sunshine Coast

How can you determine the value of your business? Nigel Hall, Exit Planning and Business Sales expert from BuyGrowSell provides an overview of their Business Worth Calculator, which will provide a ball-park figure of the valuation of your business. Nigel does contend however, that the way your business is sold can certainly affect the price you get for it. For example, if it is sold through a considered off-market process or at a fire sale auction.

The business worth calculator uses two methods; the discounted cash flow calculation and the capitalisation rate. Once you have determined these figures, you then need to use the risk slider to increase or decrease your risk. This creates a risk curve.

The next question to answer is, how can risk be evaluated? BuyGrowSell can create a Business Attractiveness Report to provide you with more insight.

By combining a Business Attractiveness Report with your Business Valuation, you can create a more accurate indication of your business's value.

Because the Business Valuation Calculator is an estimation only, if you are thinking of selling your business, you should consult with your advisor to receive a more accurate evaluation.