Featured Video Play Icon

How to sell a business: Valuing a small business – Video

The majority of businesses are valued at less than $1M, here we explain valuing a small business…

The vast majority of businesses are worth less than $1M. Infact, 95% of all businesses are in this category, typically they employ fewer than 10 people and are affordable by most aspiring individual business owners.

The key to knowing how these businesses are valued lies in what those aspiring buyers see in the business. Usually they expect to work in the business and earn both the business profit and owner’s wages. We call this the buy a job market.

In another video we’ve suggested that the appropriate profit measure for these businesses is Net Profit before proprietors’ wages, which may be one or more working owners.

In this video we explain valuing a small business in this market.

Director, Tony Brown, helps a global audience of Business Owners and Investors understand the in’s and out’s of business sale transactions, and how to prepare themselves and their businesses for the most important transaction in their business lives; through TonyBrown.net.

The video can be viewed here: https://tonybrown.net/how-to-sell-a-business-valuing-a-small-business/

If you found this video helpful, we’d appreciate a share and make sure to leave a comment!

Head over to tonybrown.net/subscribe to register for all of Tony’s new video updates, and be sure to check out the complete ‘How to Sell a Business’ series for plenty of other tips and strategies for improving the outcome of your business sale process.

Leave a Reply

Your email address will not be published. Required fields are marked *