At Emerald Coast Business Brokers, we know how to value a business, and we can help you determine how much your business is worth!
How Much is my Business Worth?
Many business owners ask this question. One way to determine how much your business is worth is to look at the basic cash flow of the company. Here are four easy steps to estimate how much your business is worth using cash flow:
Step 1: Pull out your paperwork and files and calculate the annual earnings before any taxes or depreciation.
Step 2: Factor in any compensation that you offer your employees ranging from bonuses or amenities for the workplace.
Step 3: Determine how the company has generated profit compared to the cost of running the business, i.e. expenses.
Step 4: Once you determine the percent of earnings for a given year, anticipate the same percentage growth over a span of 5 to 10 years. This is a good indicator of how the business will grow in future years.
Emerald Coast Brokers can help you determine how much your business is worth!
These four steps can give you a ballpark estimate, but there are many factors that go into a full evaluation of your business worth. This is where EC Brokers can help you determine the full value of your business. Simply fill out the form on the right and we can help you determine how much your business is worth.