Many factors go into the process of valuing a business. In real terms, a business value is obviously whatever price someone is willing to pay for it – whether that’s more or less than you’d expect. But how do you know what price is reasonable? Before entering any negotiations, it makes sense to undertake some analysis and determine what your business is objectively worth.
This article will help you understand better how businesses are valued. You’ll learn what affects business valuation and a range of different methods that can be used to estimate value. Looking to work out what your own business is worth? You’ll find advice on how to do that too.