So, you want to know how much your company is worth? I'm glad to hear it. There's no trick to Company Valuation —it just takes some time and research. But before getting into that part of the process, let's first talk about why corporate valuation matters in the first place:

Corporate valuation isn't that complicated.

If you're new to Company Valuation, or have been doing it for a while but are still confused, let me help. Corporate valuations are not black boxes. In fact, they are quite simple and straightforward.

There are only 3 steps:

• Get the right data
• Estimate the likely range of values for your company (this is called an "estimate") and consider the probability distribution of possible outcomes in this range (i.e., what will happen if I guess high or low)
• Use some common sense about how these two factors affect each other.

Write down your company's mission.

Before you attempt to Selling My Business Calculator, it's critical that you have a clear understanding of its mission. This is the core reason why people buy products or services from brands: they want to know what they're getting in return for their money.

Your mission statement should be written down in plain language and easy-to-understand sentences. It should include details about what makes your business unique—the things that make you different from other companies in your industry—and how those factors will help customers achieve their goals or solve problems.

The more specific your mission statement is, the better it will be at communicating how much potential exists within each individual customer segment. For example: "Our goal is to provide our customers with world-class customer service." Or "We want everyone who shops here to feel like royalty."

Find out what the market values in a similar industry or sub-industry.

To find out what the market values in a similar industry or sub-industry, you need to perform an analysis of data from multiple sources.

You can:

• Find out what the market values of a similar company. This involves analyzing financial statements, looking at their history and comparing it with other companies in their industry. The resulting information will tell you whether they're undervalued or overvalued based on the value of their stock price relative to their peers. If they are undervalued, then investors may be able to sell their shares at a profit before they go up again (or even go down). If they're overvalued, though, there may not be much opportunity for short-term gains on this investment as investors will have already purchased shares with high expectations that have been disappointed so far!

Figure out why similar industry companies are valued at different levels.

To figure out the value of your company, you need to look at the factors that affect its stock price.

• Financials: What's their revenue? How much cash do they have? How much debt do they have?
• Growth: Is the industry growing, or are people just buying less? Are there new trends in consumption that could change consumers' preferences over time (for example, if Amazon wins over e-commerce)? If a company is growing rapidly but not making any money yet (like Uber), it may be risky as well because investors will likely discount future profits based on this high growth rate alone—which may make it hard for investors to recoup their costs when things go south later down the road (think about how many companies failed once they got big enough).
• Competitive position: Which competitors are bigger than yours, and why does this matter for your business model and potential customers' preferences today versus tomorrow or later still? This question can also help determine whether there's room for market entry by other players entering into an existing industry segment—and thus provide opportunity too!

Conclusion

Hopefully, this post has helped you understand how Company Valuation work and why they're important. As always, if you have any further questions or need help understanding a valuation topic, feel free to reach out!

Source - https://www.storeboard.com/blogs/business/whats-your-company-worth-how-valuations-work/5517263

Suppose you’re ready to sell your business, but you don’t want to leave anything to chance. You’re thinking about hiring a business broker as an outside intermediary who can attract potential buyers while you remain in control of your company and its operations. Before you sign on the dotted line with one of these agents, it’s important to understand how they operate and how much they really add to the process of selling your business. Continue reading:

What is a business broker and what do they do?

Working with Business Brokers Central Coast plays a bridge between businesses and buyers. So who does business brokering benefit?: Owners and entrepreneurs that want to avoid capital gains taxes (when applicable), are ready to sell their company and don’t have to actively oversee everyday operations as part of selling their business or selling after they’ve started working for another company in another capacity—although there are brokers that do handle partial sales too; Businesses that can receive more money because brokers help them take on less risk in case an owner suddenly changes his mind or he needs financing in order to make it work out.

The benefits of using a business broker to sell your business

Reputable Business Broker will put you in front of potential buyers and put their expertise to work helping you negotiate your sale price and terms, minimizing any headaches that can accompany selling your business, such as accounting issues or tax implications. A business broker works as a matchmaker, bringing all interested parties together at one time so you can have a more efficient process from start to finish. Business brokers are also skilled negotiators and able to bring opposing parties to agreements on contract details faster than most owners would be able to themselves; an important element in getting deals done quickly and efficiently while maximizing value.

The process of selling your business through a broker

Generally, it's not an easy task to sell your business yourself. There are numerous details that you need to work out, such as whether or not you're ready to give up your business, who will purchase it and how much should you ask for it. Since selling a business can be so complex and time-consuming, many business owners hire brokers to take care of all of these details for them. It saves time, energy and money-three things most entrepreneurs don't have enough of! Business brokers use their own methods for finding buyers but one thing's certain: they won't waste your time with tire kickers or dreamers who aren't serious about purchasing your company.

How to choose the right business broker for you?

Choosing the right business broker is an important decision that will have a lasting impact on your business. There are a few key factors to consider when making this choice. First, you need to consider the size of your business and the complexity of your sale. If you have a large or complex business, you will need a broker who has experience handling similar transactions. Second, you need to consider the geographical location of your business and the market for your type of business. If your business is located in a small town, you will need a broker who knows the local market well. Finally, you should consider the fees that the broker charges and whether they are negotiable.

Source - https://www.apsense.com/article/hiring-a-business-broker-vs-yourself-which-option-is-right-for-you.html