What is the business worth?
This is a common question I get both from:
✅ Companies looking to grow by investing in or buying a business and
✅ Business owners seeking an investment in their business or to sell their business
It’s very hard to answer exactly since valuation is more art than science.
Entire bookshelves have been written about the topic.
But there are common techniques used to estimate the value of a business. Read below for a Cliff’s notes version on two common valuation methods.