How do you value what a business in worth? is it whatever gross profit that is comming into the business?



Answer:
A BUSINESS IS WORTH ITS INVENTORY , GOODWILL, AND 3_5 TIMES IT NET EARNING PLUS REAL ESTATE AND ANY ROLLING STOCK LIKE CARS AND TRUCKS . SELLER HAS TO PAY ALL DEBTS OFF TOO .
The business valuation is a technique.

Most common one used is the Net Asset Value method. In this case the revalued figures for the entire assets included in the contract less the revalued liablities is computed and the purchase consideration is arrived at.
Contact an accountant that specializes in business valuation.

The answers post by the user, for information only, BAnswer.com does not guarantee the right.

Other Questions and Answers:
  • how would you advertise your small business?
  • what would be a good business in a industrial park?
  • Is the age of 33 too old to look for a new career or go to school?
  • need a excel formula which will automatically subtract and add my columns?
  • What kind of business should I start at home? I am quite busy with children and school.?
  • what is the procedure to setup a small bio diesel plant, and what will be the investment requirements.?
  • My wife was invited to a "Party" Demonstration, "Class" whatever you may call it .
  • Is it OK to sell for fun (or practicing selling) on eBay?