Photo: Flickr zzzack
Whether you’re ready to sell or are just curious, it’s good to know your hard work is paying off– and exactly how much it’s paying off.John Warrillow at Inc.com suggests four ways to determine your business’ valuation:
1. Ask a mergers and acquisitions professional. They’ll be able to shoot it to you straight.
2. Business Valuation Resources (BVR). This company gathers information about recently sold businesses and calculates industry norms.
3. M&A firm newsletters. Rather than wine and dine an M&A professional, you can subscribe to newsletters they publish about deals they’ve done, which can give insight into your industry.
4. Bizbuysell.com. It’s the largest online marketplace for people selling and buying businesses. This is a great option for small businesses, but it doesn’t attract the big buyers, so it may not accurately valuate a company’s worth.
Warrillow says these four tactics have helped him estimate companies within 20% of their final sell price.
Give it a try, or check out Inc.com for more information.
NOW WATCH: Ideas videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.