Value of a small business?

Re: Value of a small business?

A business can be valued either on the basis of its assets and/or possible future earnings or a combination of both. Valuing a business on the basis of its assets means just that - make a list of all the assets, land, building, machinery, tools, stocks, receivables etc. Receivables and stocks are valued at its current cost, Machinery and tools are valued at its replacement cost based on its condition, life expectancy etc. Land and Buildings are valued on the basis of current market values. Intangibles such as goodwill are valued on a basis of x number of years earnings potential. A business may also have a customer list that it has nurtured over the years. This can also be valued on the basis of possible earnings using that list to continue and sell the same products.

Re: Value of a small business?

According to me the services provided by residential community are readily visible. What do you say?

Re: Value of a small business?

Hi
Are the small business valuation methods best used to conduct a business valuation on an entity established for the purpose of fulfilling a specific project, in certain startup and other companies where cash flow is more important than net income, and when a certain time frame is set where an investor wishes to see his investment returned over a specific period of time. In discounted cash flow, the present value of liabilities is subtracted from the combined present value of cash flow and tangible assets, which determines the value of the business.

Thanks

Re: Value of a small business?

You can read this artilces its very helpful for this topic.. 🙂

http://www.docstoc.com/docs/1019282/how-to-value-a-small-business

Re: Value of a small business?

I agree With You.It's Totally Depends on the Countries Economic and also depending on the economic system in operation.I the Small Business Profit is Very less then the other Company.Small Business Starts With the Very low Cost.Small Business is also Called microbusinesses in the Term of the World Bank.

Re: Value of a small business?

A business can be valued either on the basis of its assets and/or possible future earnings or a combination of both. Valuing a business on the basis of its assets means just that - make a list of all the assets, land, building, machinery, tools, stocks, receivables etc. Receivables and stocks are valued at its current cost, Machinery and tools are valued at its replacement cost based on its condition, life expectancy etc. Land and Buildings are valued on the basis of current market values. Intangibles such as goodwill are valued on a basis of x number of years earnings potential. A business may also have a customer list that it has nurtured over the years. This can also be valued on the basis of possible earnings using that list to continue and sell the same products.

Re: Value of a small business?

Hello..................

There is interest in purchasing a business that my mother and I own/run. We are willing to entertain an offer but I need to know what the formula is for calculating the fair market value.

It is a service based business. We don't sell anything beyond our service and we do not own the building. We're talking about only selling the actual business itself. Client base, equipment, logo, established reputation, etc.

Re: Value of a small business?

Work a valuable asset in the future and / or potential profit basis, or on a combination of both could be. Evaluate your property based on the work simply means that - with an estimated value of receipts and other receipts all the assets, land and building, machinery and equipment, and to create a list of stocks and machinery and their status by equipment replacement costs at the current price of land and buildings with an estimated value of the average life expectancy based on contributions and therefore the current market value. Based on the number of intangibles such as goodwill value of the potential benefits for the year Exp. Is a business that customers have embraced this years could be a list. It can also be evaluated on the basis of profits is possible to use the list to continue to sell the same product.

Re: Value of a small business?

Henry_Jakson;53859 wrote: According to me the services provided by residential community are readily visible. What do you say?

yes.. you are right..they are good for some things.. not for all needable things..

Re: Value of a small business?

the small business valuation methods best used to conduct a business valuation on an entity established for the purpose of fulfilling a specific project, in certain startup and other companies where cash flow is more important than net income, and when a certain time frame is set where an investor wishes to see his investment returned over a specific period of time. In discounted cash flow, the present value of liabilities is subtracted from the combined present value of cash flow and tangible assets, which determines the value of the business.
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Re: Value of a small business?

I would also recommend if you are considering selling your business to contact a professional business broker in your area. He or she may be able to provide you with valuable information about recent sales in your market of similar businesses like yours.