How much will my business be worth?
There are many different ways of valuing a business, depending on the circumstances: for example, based on earnings, cashflow, turnover or asset value. A growing business in a sector with good prospects will be more highly valued than a mature business in a declining industry. Your advisers will be able to provide a broad indication of what you can expect.Ultimately, however, your business will be worth what a purchaser is prepared to pay for it, and is subject to negotiation. You and your advisers should have an idea of how much you hope to get, though you would not normally reveal this to potential purchasers. Instead, you might give an indicative level. You might also prepare arguments to support a high valuation.
You are more likely to be able to negotiate a higher sale price if you can interest more than one potential purchaser.
