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.

Related Videos

Videos Channels

Explore our Site

Money MOT
T and C