Valuation

How much is your business worth? You make X dollars in sales per year, your profits are Y, and your assets are worth Z, but what does this all mean? There are many situations where a business would need to know its value.

• Sale, purchase or merger
• Tax purposes
• Legal purposes
• Obtaining financing
• Buy-out of shareholders

The value of a company is never set in stone...it is more of an art form. It depends on who is valuing the business and for what purpose. It depends on the methodology used and the factors considered. It depends on whether you are growing or shrinking, the assets you own, your competitors, your market, etc. All of these factors need to be considered when valuing your business.