How much is my business worth? (Again)

May 26, 2022 10:40:38 PM | small business M & A How much is my business worth? (Again)

We frequently get asked by business owners, how much do you think my business is worth? Below we answer that question and related questions we are often asked.

What is the value of a business?

Similar to the question, how long is a piece of string, as the actual value of a business is ultimately dependant on if and how much someone is will to pay for that specific business at that specific point in time.

The best way for an owner to increase the value of their business is to find multiple strategic buyers that then compete to drive up the value of the business.

How to value a business?

There are many ways to value company, including Multiples, Discounted Cash Flow (DCF) and tally the value of the assets.

But why not start by trying our free company valuation application (multiples)?

 

How much are my shares worth calculator?

We assume that you are asking about a private company rather than a publicly listed company. If it’s the later, then Yahoo Finance is not a bad place to start.

If it is a private company, then you don’t need a calculator to find how much your shares are worth, instead you have to estimate how much the company is worth and then divide it by the number of shares issued, to then find an estimate of price per share.

Please note there are a lot of ifs, maybes and depends in that previous statement – and probably the more important question is why do you need a price for your shares?

How much am I worth?

This is either related to the question above or a very deep philosophical question.

Business for Sale in the UK Premium

Businesses for sale in the UK typically have a slight premium but that is highly dependent on the location as well as many macro factors, such as currency exchange rates and if / how the business may have been impacted by inflation, sector competition, changes in trading due to BREXIT,  and / or new legalisation.

When you buy from a small business – what happens?

We have written a free guide about Selling and Buying a business that applies to both small and medium sized business, that explains the three phases of buying a small business, which are preparatory, marketing, and legal.  Download our Free 'How to Sell Your Business' eBook to learn more.

James Ruthven

Written By: James Ruthven

James Ruthven is a technology leader with 25+ years of success in leading organisations in change and growth, delivering solutions that transform customer experience.