The comprehensive approach to determining your company’s value is to conduct a business valuation that includes market comparisons. Several major databases are available via subscription, such as Done Deals, BIZCOMPS, and IBA Market Data. Business owners can also get valuations from accounting, consulting, and investment banking firms.
The quick, less scientific way to determine your value is to look up sales of similar companies online. Inc.com’s website provides free valuation about valuation. Whichever angle you choose, be sure to include in your owner’s vision the dollar value you’re shooting to sell your business for.
Armed with the valuation results, identify areas you need to fine-tune and improve to create increased earnings and, ultimately, a higher price when selling your business.
It is also helpful to assemble a group of trusted advisors to help protect your assets and future desires. When taking all considerations to heart, developing sufficient responses and eventually setting a solid strategy can be easier with outside expertise and resources.
The following free, online resources can also help you start your transition process. These sites are brokerage sites for buying and selling businesses, and they can help owners get started and/or see what valuations similar businesses are earning.