When the time comes to putting your business up for sale, it helps to have a solid idea of its value before selling equity or entering a strategic partnership. Here at Ashley Capital Group, we’re experts at assisting businesses to determine their real value and preparing them to merge, sell, or create mutually beneficial partnership agreements that increase their turnover and ROI.
There are several ways to determine the market value of your business:
Revenue Based Estimations
Calculate how much your business generates in annual sales to get a rough idea of how much the company may be worth. Take this information to a stock or business broker, and they will be able to generate an estimate of the businesses worth based on the sales data provided.
Consider the Value of Assets
Add up the value of all the things owned by the business; this can include buildings, equipment, and inventory of stock. Next, deduct any debts or liabilities in the business’s name. The remaining figure will give you a starting point on the business’s worth. You can use this figure as a backbone as you also consider expected earnings and revenue to understand the overall value of the company.
Think Beyond Finances
Consider things like the location of your business, strategic potential, and perceived value before you estimate the value of the company based solely on number crunching. Do you have any synergies in place that would be of incredible value to a would-be acquirer? If so, calculate how much value they could achieve.
Calculate a Market-Based Valuation
Contact Ashley Capital Group and we can help you to determine the value of your business based on current market sales statistics. We can determine the value of your company by looking at the prices of similar companies on the market, or other companies that have recently sold. Using this data, alongside other variables such as profit margins, geographic location, and sales projections, we can give you a ballpoint figure with which to start selling equity.
For more information, or if you’d like to start the process of selling your business, contact Ashley Capital Group today.