What’s your business worth? It depends on how you slice it

Figuring how much your business is worth is important even if you are not a large corporation. Small businesses should know how much they are worth especially when securing for a bank loan and determining how much the buyer should pay for the business in case you want to sell it.

When selling your business, you need to figure out how much your business really worth. This is done by making a list of all your assets and the price that you could sell them for today. Assets include your house, any investments including cash deposits, shares, rental properties, business interests, superannuation funds and the surrender value of insurance policies.

Determining how much you worth is not only important in the event of sale or acquisition; it is also important to know your worth when you are establishing partnership agreements or dissolution, resolving disputes relating to estate and gift taxation, or even assist or something as divorce settlement and proceedings.

When determining the worth of a company, there are many intangibles to consider. If you use a business broker, he/she can be a great help in understanding how best to price your business for maximum benefit.

One reason why determining your business’ worth is challenging is that it changes from time to time. For more on this subject, read this article from Smart Company Australia: http://www.smartcompany.com.au/business-advice/strategy/whats-business-worth-depends-slice