What is my business worth?
Our business valuation reports present an in-depth analysis
that establishes the worth or fair selling price of a business.
Make an appointment today for your free business valuation
Business owners should consider a professional business valuation when:
- Selling a business
- Buying a business
- Offering stock of their business to investors
- Securing a business loan
- Planning their estate
- Transferring a business into a trust or creating a succession plan
- Determining the assets and liabilities of their business in a divorce settlement
- Assisting attorneys in litigation
- Settling an insurance claim
- Establishing an ESOP (Employee Stock Ownership Plan)
What Your Company is Worth According to the Multiplier of Discretionary Cash Flow Valuation Method under the most ideal of conditions.
Disclaimer: This valuation method is extremely superficial and is here for illustrative purposes only, and are not indicative of a business valuation.
Step 1: Calculation of Discretionary Cash Flow (DCF)
1. Most Current Year's Annual Net Operating Income (NOI)
2. Add Expensed Depreciation
3. Add Expensed Interest
4. Add Expensed Owner's Salary
5. Add Owner's Perks
6. Add or Subtract Non-Recurring Expense or Income
7. Add Discretionary Expenses
Total is DCF
Step 2: Calculate Valuation:
- If DCF is less than $100,000, but over $75,000 multiply by 2
- If DCF is $100,000 to $300,000, multiply by 2.3 to 3.0
- If DCF is over $300,000, multiply by 3 to 3.5
But, far more accurate and generally accepted is to have your qualified "BBH" broker merge the values of:
1. Leasehold improvements (depreciated)
2. Furniture fixtures, and equipment (depreciated)
3. Resalable Inventory
4. Value of intangible assets
5. An appropriate multiple of discretionary cash flow,
Then add or deduct a "factor" considering the worthiness & practicality of the lease and location of the business as well as the number of un-expired years on a valuable lease.
Your JR WORTH & CO Valuation Specialist is qualified to develop a reliable worth of your business.