There are several different methods of finding out what your business will likely sell for, the most popular being:
1) Return on Investment (ROI) – applying a multiple to your adjusted net profit (which is your net profit plus addbacks).
2) Establishment Method – based on asset value or replacement cost of setting up your business.
3) Opportunity Value – based on the opportunity/future of the business.
For small to medium sized businesses many buyers use “kitchen table economics” to decide what offer they’ll make. This is the process of asking yourself “how much will it cost to buy the business, how much will the business return to me (ROI) and how long will it take to re-coup my investment?”
In order to find out what method best suits your business sale, book in a free, no-obligation appraisal with a Bonza Sales Expert or send us a message.
We’d be happy to give you our experienced opinion, free of charge, no expectations.
There are several different methods of finding out what your business will likely sell for, the most popular being:
1) Return on Investment (ROI) – applying a multiple to your adjusted net profit (which is your net profit plus addbacks).
2) Establishment Method – based on asset value or replacement cost of setting up your business.
3) Opportunity Value – based on the opportunity/future of the business.
For small to medium sized businesses many buyers use “kitchen table economics” to decide what offer they’ll make. This is the process of asking yourself “how much will it cost to buy the business, how much will the business return to me (ROI) and how long will it take to re-coup my investment?”
In order to find out what method best suits your business sale, book in a free, no-obligation appraisal with a Bonza Sales Expert or send us a message.
We’d be happy to give you our experienced opinion, free of charge, no expectations.
