The value of a business is the most important factor taken into consideration when a business owner is considering selling their business. However, most business owners don’t know how to properly value their business.
A common, and often very costly mistake, is to just use the business’ reported earnings as the sole basis for the valuation. The best way to determine an accurate value is to start with earnings and then dig deeper and examine the “quality” of those earnings so that you can see the unique qualities of your business that could add or detract significant value.
Mike Richmond explains the importance of uncovering the hidden value in a business and what potential buyers value most, and are willing to pay higher multiples to get it!
