With a comprehensive business valuation, you can get an idea of where your company stands. The value of the business is normally assessed by considering the following: net profit, growth trend, competitor activity and age.
The worth of any given organization may be evaluated with Transworld Business Advisors’ (free) service which considers all factors such as net profits and customer retention to estimate future prospects – finding out this information is a precursor to preparing for sale or exit from ownership altogether.
To really know the worth of your company, there are two commonly used benchmarks:
1) Your company’s annual sales totals resulting in a percentage of sold price vs. total revenue.
2) Annual recasted profits totals that result in a multiple of earnings. We have created an exclusive calculator program just for you and with these figures it can generate reports about its value so you know what number is best–or if selling will even be beneficial at all!
There are two ways to calculate how much someone might pay for their business; one looks at profit margins and another compares them against yearly sales numbers (which also include things like inventory). This way they’ll get something more accurate.
A thorough and accurate business valuation is impossible to do without taking the current market trends, all other assets owned by the business into account. For instance, trademarks, furniture, commercial real estate or patented technology – even intangible assets like public perception of your brand can be factored in when determining its value- speaking to a broker with experience in this area will give you an idea about how much it could potentially sell for.
The most important thing a business broker does is help you find the value of your company. For one, they know what buyers are willing to pay and how much information they want from others looking at their potential purchase. Transworld brokers can also tell you what price range should be set for your own valuation and then sell it in that marketplace accordingly with an eye on maximizing its worth while still satisfying the buyer’s needs
