How Much Can I Sell My Business For

How Much Can I Sell My Business For?

There are several different methods used to determine what your business will likely sell for. The most common include:

1) Return on Investment (ROI)

Applying a multiple to your adjusted net profit. This is your net profit plus any legitimate addbacks.

2) Establishment Method

Based on the asset value or the replacement cost of setting up your business from scratch.

3) Opportunity Value

Based on the future potential and growth opportunity of the business.

For small to medium-sized businesses, many buyers use what is often called “kitchen table economics” when deciding what offer to make. This means asking:

How much will it cost to buy the business?

How much will the business return to me?

How long will it take to recoup my investment?

Understanding which valuation method best suits your business is key to setting the right asking price.

To find out what your business could realistically sell for, book a free, no-obligation appraisal with a Bonza Sales Expert or send us a message.

We’re happy to provide our experienced opinion, free of charge and with no expectations.

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