How To Value a Business

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How to Value a Business

Resources for valuing a business.

Valuation Fundamentals and Methods

How To Value a Business for Sale

Determining the value of a business is multilayered approach and essential when raising capital, buying, and selling a business.

Average Business Valuation Multiples

When determining the value of a business, business valuation multiples are used to benchmark a business's value by comparing businesses for sale to other, similar businesses.

Calculate Your Business's Value

Determine how much your business may be worth with a business valuation calculator. This calculator returns a valuation range, based on earnings and the average market valuation multiples in the same industry.

Understanding Your Business’s Enterprise Value When Preparing for a Sale

To assess a business’s total value, exploring a variety of valuation methods is essential. Enterprise value, combined with competitive analysis, is key to understanding the total worth of a business.

Enterprise Value to EBITDA to Value a Business

The enterprise value to EBITDA valuation metric provides a clear, comparative view of a company's value, regardless of capital structure or market capitalization.

Should Business Owners Value Their Business on Past or Future Earnings?

Explore the factors that influence whether to value a business based on past or future earnings. Learn about different valuation methods, the role of company size and growth trajectory, and how to choose the right approach for your business.


Financial Metrics and Analysis

What Is EBITDA? A Guide to This Essential Business Valuation Metric

EBITDA is a key financial metric for businesses. This guide explains what EBITDA is, how it’s calculated, and its significance in business valuations.

Adjusted EBITDA: What Are Add-Backs to EBITDA?

Adjusted EBITDA is a metric of earnings that adds back interest, taxes, depreciation, and amortization expenses. Adding-back non-recurring and discretionary expenses to provide a clear picture of a business’ earnings.

EBIT vs EBITDA: What’s the Difference?

EBIT vs. EBITDA: Learn the difference between two important financial metrics: Earnings Before Interest and Taxes (EBIT) and Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA).

SDE vs EBITDA: Which Financial Metric is Right for Your Business?

The two most commonly used financial metrics for measuring the profit or cash flow of small businesses and middle market companies are seller’s discretionary earnings (SDE) and earnings before interest, taxes, depreciation, and amortization (EBITDA).

What Is Amortization in EBITDA?

EBITDA, earnings before interest, taxes depreciation, and amortization measure’s a businesses operating efficiency. Amortization, an accounting practice distributing asset costs over their lifespan, plays an important role in valuing businesses for sale.

What Is Working Capital? Understanding Its Impact on Business Valuation

Learn about the role of working capital in business valuation and how what buyers view it impacts your sale.


Influences on Valuation

Selling Your Business: Circumstances That Impact Valuation

The value of a business adjusts to account for a variety of circumstances during the process of selling a business. Read more to learn about the conditions that may impact valuation.

Business Valuation: Preparation, Strategic Approaches, and Value Enhancements

Whether you are considering selling your business, need a new round of funding, or a business loan, you need to be aware of your present business valuation and opportunities to boost its value.

Identifying Pre-Sale Improvements to Attract Business Buyers and Build Value

Identifying and addressing pre-sale improvements makes your business more appealing to potential buyers and maximizes its value.

The Value of Your Management Team When Selling a Business

Tips to build a strong management team and boost your business's sale price. Learn how to value of management is a strong asset, not a liability.

The Role of Intellectual Property in Business Valuation

Learn how to value intellectual property in business valuations. Discover key IP valuation methods and understand the impact of intangible assets on overall business worth.


Special Considerations

Franchise Resale Value: Factors that Influence Your Exit Price

Learn factors that influence the resale value of a franchise and discover strategies for setting an asking price that maximizes your return when selling your franchise.

Valuing Your Business for Sale: The High Value of Business Sale Professionals

The surest way to arrive at a valuation for your business is to seek the guidance from professionals experienced in business assessments, valuations, and sales.