đź’° How Much Is My Business Worth?
Updated: Sep 29
If you’re thinking about selling your business, one of the first questions you’ll probably ask is:
“How much is my business actually worth?”
The answer is more than simply looking at last year’s profit.
A business appraisal generally considers factors such as:
✓ Maintainable earnings – What level of profit can a new owner reasonably expect?
✓ Financial performance – Are revenue and profits stable or growing?
✓ Recurring revenue – How much income is repeat or contracted?
✓ Customer diversification – Is the business dependent on a few major customers?
✓ Owner dependence – Can the business operate successfully without you?
✓ Systems & staff – Are there documented processes and a capable team in place?
✓ Lease & location – Are the lease terms suitable for a purchaser?
✓ Assets & equipment – What assets are included in the sale?
✓ Market conditions – What are buyers currently looking for and paying for comparable businesses?
✓ Growth opportunities & risk – What potential does the business offer its next owner?
A common approach is to determine the business’s normalised or maintainable earnings and apply an appropriate market multiple. However, the right methodology depends on the type and size of the business.
As a CPA and Business Broker, I bring a financial perspective to the appraisal process, helping business owners understand the numbers behind their business and the factors that may influence its market value.
Businesses. People. Possibilities.
