At Transworld Business Advisors of Atlanta, we know how critical it is to accurately calculate the value of your business for selling purposes. We use a combination of methods.

One way is to look at the earnings of your business. We take a measure of the business's profits, such as net income or EBITDA, and then apply a multiplier to determine its value. This multiplier is based on recent sales of similar businesses in the market. By analyzing what other businesses like yours have sold for, along with industry trends, we can estimate the value of your business based on what the market is willing to pay.

Another method is based on the assets of the business. We calculate the net value of all its physical assets, like equipment and inventory, and then subtract any outstanding debts. Sometimes, intangible assets like brand reputation or patents are also considered in this calculation.

Lastly, there's the discounted cash flow method. This involves projecting the future cash flows your business is expected to generate and then determining their value in today's terms. We discount these cash flows to account for the time value of money, using an appropriate discount rate.

Our Senior Advisors have the knowledge and the tools to look at your business's financials to provide you with a real-world assessment of value, maximizing the opportunity to attract the right buyer at the right price.