How To Value Your Business
Published / Last Updated on 28/02/2020
Rule Number 1 – Owners tend to overvalue their business
Rule Number 2 – Purchasers look for cost cutting opportunities, profit making opportunities and synergy i.e. how would your business slot into theirs and create advantages for both or new markets for both.
Valuation Option 1 – EBITDA Earnings Before Interest, Tax, Depreciation and Amortisation costs - a multiple of EBITDA
Valuation Option 2 – Multiple of ongoing profit
Valuation Option 3 – Multiple of ongoing new revenue
Valuation Option 4 – Multiple of repeat revenue
Plus add values of assets, stock, rights, copyrights, patents and intellectual property.
