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What Is Your Business Worth?

There are a number of ways the worth of a business can be determined. Every business needs to be looked at in the context of its individual make up, location and operation.

The main reason for a business to exist is to generate income.

Profitability is a key factor in determining the price for which it can be sold. But as usual it is not always as clear-cut as this.

Business Brokers Network Australia, Business Brokers and Business Valuers, start with reviewing financial documentation, having a discussion with the owner and going through a range of business documentation. We analyse the risk factors of the business to determine the likelihood of future income and profitability. From this we can suggest a range that is a likely price point for the business and the business owner makes the decision on the asking price.

Our Business Brokers and Business Valuers have looked at businesses from $20,000 to $20 Million.

Business value should be as precise as possible. If the business is over-priced it will never sell and a lot of time will be wasted.

A good first guide to pricing your business, is to ask yourself honestly, 'Would I pay this for my business'.

The Value of a business can also be affected by the current market, business perception, desirability and any other number of factors but more importantly the value and understanding of the business by the Buyer. In the end it is a price that the Buyer is willing to pay and the Seller is willing to accept, with neither under pressure to do so.

Thinking of selling, just chat with a Business Broker Network Australia member in your state, check the Broker Information under the BBN Broker tab