There is no simple answer or formula for valuating the value of a business. There are appraisers that specialize in valuing a business. Professional business brokers can give a range of prices that will be fairly accurate for many small businesses, based on experience with the market, rules of thumb, and an analysis of financial statements and cash flow.
Our Business Brokers believe that cash flow is the most important factor to consider in a small business sale, as the business must be purchased with that available cash flow for an owner-operator buyer to be able to survive after the sale.
Normally there is no cost or obligation to find out on a business price at its market value. Contact Us for SRQ Business Broker to valuate your business. Our Business Brokers are paid at closing when the sellers get their check. All communication should be confidential. There should be No Up Front Fees.