To really know what your business is worth takes time and skill. Each business is unique and may have positive and negative factors that add or subtract from the value that a buyer is willing to pay. A current issue that needs to be considered if the business is to be financed is the availability of money. The bottom line is that any business is worth where the minds of the buyer and the seller meet. Below are a few of the factors I would ask a seller to present if I were assisting in targeting a price.
FACTORS DETERMINING BUSINESS VALUE
1. Income Stream
2. Equipment
3. Fixtures
4. Improvements
5. Real Estate
6. Lease
7. Licenses
8. Customer Mailing List
9. Patents
10. Copyrights
11. Secret Recipes (formulas)
12. Franchise Rights
13. Training and Consulting
14. Goodwill
15. Key Employees
16. Terms of Sale
17. Years in Business
18. Competition
19. Legislation
20. Risk
21. Market Trends
22. Ease of Duplication
Business Depot
Larry Steinborn, Broker
239-433-1343
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