How do I value my business?
The most important place to start if you are thinking of selling your business is to know its value.
Almost without exception, a business owner thinks their business is worth more than it is. Equally, almost without exception, a business buyer thinks the business is worth less than it is.
What is often not recognized, if a third-party loan such as an SBA loan is required for the business to sell, the SBA lender has an underwriting process that will only allow the buyer to pay what the SBA lender considers, Fair Market Value. For an SBA lender, Fair Market Value includes a downpayment the buyer has in cash and then monthly loan payments the buyer or borrower can service based on the historical cash flow performance of the business.
What is the value of my business?
Because valuing a business is such an important part of having any hope of selling a business, with the help of some experts I’ve put together a program called “Value your business in 7 steps.”
This program was put together because many business owners were wanting to understand how to value their business.
Valuing a business has many moving parts. It’s not just a matter of taking one or two data points. To explain the nuances this program that’s been put together has a series of 7 steps with each step explained; one email at a time.
Here is a page on my website that explains a little more about Valuing your business. https://www.rogersonbusinessservices.com/valueyourbusiness
Valuing your business in 7 steps
The program that’s been put together covers 7 primary topics and includes an Excel file for you to use in order to determine a basic value for your business. The program also includes 7 PDFs of information so you can thoroughly understand each of the 7 steps and how each one builds on the next.
• Step 1 covers the 3 methods of valuing a business.
• Step 2 looks at the first valuation method called the Asset approach.
• Step 3 covers the topic of reviewing the business financial statements, so the business valuation is accurate.
• Step 4 discusses the second valuation method called the Market approach
• Step 5 review the third valuation method called the Income approach and one specific method.
• Step 6 looks at the Buyer Test Method which is a second Income approach.
• Step 7 brings it all together to arrive at the final value of the business.
Where do I sign up to learn more about how to value my business?
If you would like to learn more about how to value your business, simply go to this page on my website. https://www.rogersonbusinessservices.com/valueyourbusiness
If you want to get started right away, click this link https://rogersonbusinessservicescom.activehosted.com/f/27 and enter your details and you will start your learning about the Steps to Value Your Business.
Your feedback is more than welcome
This program of how to value your business is new and the best part is that it is free.
If you have feedback or suggestions please feel free to email me at firstname.lastname@example.org.