How Do You Value A Business

If you're thinking about selling your business, you likely want to know how much it's worth. But that's easier said than done because there are so many factors that go into determining value. To help, we've compiled some tips from experts on How Do You Value A Business   and avoid common mistakes along the way: Decide how you want to value your business. The first step in determining the value of your business is deciding how you want to value it. There are two main ways to do this: Market Value - This is the price that a willing buyer and seller would agree on if they were both aware of all relevant facts and able to negotiate freely. Book Value - This is the price that can be determined by subtracting assets from liabilities.     Don't use a multiple of earnings. This is one of the most common mistakes people make when determining the value of a business. There are several reasons to avoid this approach, but here's the main one: If you were to buy an