How to Valuate a Business?

[OakMarkLondon]

How would you go about valuating a small business (just one owner and no shareholders).
I was looking on the web but the ways seem to be rather basic and may vary a lot: assets approach, DCF, or multiplies.

Is there any website with a good calculator or perhaps a software that would help with the valuation?

Thanks!

 

[kevin.doran]

There's more than one way to skin a cat I'm afraid, don't expect to get much of what you need from Google.

What industry are you in?

 

[Bob]

Regrettably, a one man business is only worth what someone will pay for it Frequently any goodwill is personal to the owner and not easily transferable.

 

[OakMarkLondon]

Hi Kevin,

The business is wholesale food and drink mainly imported beer and wine.

 

[uksme]

Hi OakMarkLondon, the multiples tend to differ significantly based on the type of wholesaler, but on our website we see a typical asking-price/profits multiple of 1 to 1.

I recommend having a look at our wholesalers for sale search - you might find some similar businesses and be able to work out a sensible price based on what others are asking. There are c. 200 businesses for sale on this search, but you can filter your search down by profit and turnover using the options on the left - does this help?

 

[quikshop]

Beauty is in the eye of the beholder

I have sold a £200k turnover business for £25k, and a £57k turnover business for £65k... with the smaller business that fetched the higher amount we had 3 bids above our asking price before we went with the buyer who could complete the quickest.

A lot of it is luck; finding the right buyer at the right time. There are some great online business portals out there for drumming up interest.