Chapter 9

What Is Your Business Worth?*

Abstract

What is your business worth? Whether you are seeking financing, selling, acquiring, or investing in a business, your company’s valuation is the number one factor. Whether you are applying for a bank loan, partnership buyout, or any other business activity, you should know how much your business is worth even if you are not planning on selling it today. If you cannot sell your business, all you have is a high-paying job. You could take for granted that you will sell your business when you retire, but if you cannot, your business does not have much value. You will have to save money for retirement in some other way. Buyers try to determine how badly you need to sell and factors in the industry ...

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