Best Way to Value a Business ?

[MarkPearson]

How is the best way to value a business?

 

[bwglaw]

Again, as I said in the other forum it depends whether it is a going concern or an online business.

Can you elaborate on this? Basically the simplest way is to value current assets, less liabilities add goodwill premium at market value. It depends on the sector too

Jonathan

 

[MarkPearson]

Thanks for your help.

What's standard? times by x amount of the turnover or profit?

I am looking to value RosesbyDesign, I have had a few offers for the business but would like to know its real value.

 

[Alpha]

Actually the best way to value a business is what you are willing to sell it for compared to what someone else is willing to buy it for. If the two are close then that will be the most accurate valuation

 

[barry.hynd]

Hey Mark,

From memory I cant remember how long RBD has been going but it cant be that long. Maybe others will disagree but i think it's way too early to think about an exit. Why are you thinking like that? Are there now other competitors? Do you have other opportunities that you want to explore?

 

[MarkPearson]

Its 8 months...

I am only considering as I received so sad news today and my personal circumstances have now changed. Some people have made offers on my business since day one.

As for the business its doing well and on the up. So I would be sad to see it go (if it comes to that)

 

[bwglaw]

As it is an online business I am inclined with agree with Alpha. I have bought online businesses before and I would be looking at a number of factors and I have often requested evidence of these, including web statistics, accounts, legal title etc

You could contact Sedo http://www.sedo.co.uk for an appraisal of the domain name and site content. To be honest, unless you are making a significant amount of money I cannot see you getting more than £10,000. That is my opinion.

Jonathan

 

[barry.hynd]

Hi Mark,

I'm very sorry to hear it's a personal matter. One other way to approach this may be to consider taking a partner on board while maintaining a stake in the business. We spoke before you did RBD and I have to say I wish i'd went in on it. I dont think it's any where near it's potential and it would be a shame for someone else to reap the rewards of your efforts.

I have to agree with Alpha and handson on this. It wont value that well and the business will also have to be up to date with all accounts etc for anyone to really make you a good offer.

At the end of day the circumstances may be so bad that you really have no choice but think things through long and hard before jumping in to it.