Chapter 6
Figuring Out How Much the Business is Worth
IN THIS CHAPTER
Choosing a valuation method
Seeking a professional appraisal
Tracking and comparing other businesses that have sold
Getting financial data from research firms and publications
Working with a business broker
When you begin exploring businesses for sale, you don’t know exactly what a given business is worth and you risk overpaying for that business if you jump into a deal too soon. However, with time and the right resources, combined with a little upfront due diligence, you can get a good handle on a particular business’s worth, which may or may not align with the owner’s asking price. (For more on the search process, see Chapter 4.)
You can start by taking a cue from smart home buyers and real estate investors: To find out how much a property is really worth, consider comparable sales — that is, the amounts that ...
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