Determining Value

Determining the value of your business requires more than financial statements. A business valuation takes into account such factors as market conditions, industry comparisons and future profit potential.

Common influences on the selling price of a business are:

• Accuracy of the books and records
• Dependency of the business on the owner
• The owner’s willingness to help finance the transaction
• Quality of the remaining employees
• Stability of product supply
• Number of customers
• Stability of sales
• Sales trends
• Industry trends
• The economy