Determining Value

Determining the value of your business requires more than financial statements. A business valuation takes into account such factors as market conditions, industry comparisons and future profit potential.

Common influences on the selling price of a business are:

  • Accuracy of the books and records
  • Dependency of the business on the owner
  • The owner’s willingness to help finance the transaction
  • Quality of the remaining employees
  • Stability of product supply
  • Number of customers
  • Stability of sales
  • Sales trends
  • Industry trends
  • The economy