Thread: Sell It All?
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Unread 07-12-2011, 07:58 PM   #12
HBMTN
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I have researched this on business value for some time and there is no clear cut formula but the most common idea for placing a value on a business I see is to get the total value of all assets, then add the gross profit of between 1 and 3 years of the business to the assets, then take that total and deduct all debt the business has and the number you get there is a ball park value the business when it come time to sell. I'd love to know if there is a better formula but this is what I have been able to find.
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