We hear this question several times a day.
Business valuation is a mix of art and science. Some elements, like pulling information from your P&L or Balance Sheet are straight-forward. But other elements involve interpretation and judgment. Two companies with identical profit and loss and balance sheet numbers can have very different fair market values. We know this as well as anyone: We have been buying and selling businesses for over 30 years and valuing businesses just as long. Lots of people: friends, business associates, and even financial professional who should know better, are all too happy to offer well meaning (but simplistic to the point of being usesless) advice like:
Others over-complicate it:
We created EZValuation, a web based valuation tool that is neither simplistic nor complex, yet it can deliver an accurate valuation for small to medium size privately held companies. It is based on our years of valuing and selling privately held companies, and on accepted principles of valuation. Our system interviews you, asking for financial and non-financial information. In about 15 minutes, you will have a complete valuation for your business or the business that you are considering for acquisition. The fully printable PDF report details the methodology we used to arrive at the valuation. And it`s free! So, if you want to know the fair market value of your business (or someone else's) for any purpose, click continue. |