No Matter What Someone Has Told You In The Past About What Your Business Is Worth, They Are 100% WRONG!
There are literally dozens of reasons to want to know what your business is worth, such as for a partnership buyout, maybe for an estate plan or even possibly for an employee stock incentive program. But, if you want to know what your business is worth so you can sell it, then there is only one correct answer.
Your business is worth what someone is willing to pay you for it.
That’s the only correct answer. Someone might tell you that it’s worth 3 times your EBITDA or the adjusted value of all of the businesses assets or you may even hire a business valuation expert to find out. But, in the end when it is all said and done, the answer they give you will be 100% wrong. That’s because the real value of what your business is worth, when it comes to selling it, is simply what someone else is willing to pay you for it and that is completely dependent on WHO you sell it...