What Is Business Valuation?

Before you sell your business or buy a business, it is vital to know the business’s value. Business valuation is the process of putting a price tag on a business or company unit in order to determine its economic value.  NBS looks at the following factors in order to place a value on your business:

• Your business’s history.

• A description of your business’ products, services, geographic market area, etc.

• Your business’s marketing activities such as sales, distribution, customer base, and competition.

• The organization structure of your business including management, key employees, compensation, and benefits.

• The historical business financial statements.

NBS uses the above information and weighs the nature of the business, economic conditions, financial performance, and values of assets to arrive at a fair market value for a business. Knowing what a business is worth is essential for both the buyer and the seller to make sure each gets a good return on the money invested. *

If you are planning your exit strategy from your business, knowing the business’s value is essential. Without it, you could leave millions on the table. Getting a qualified estimate as to the fair market value of your business will help you make one of the most critical financial decisions of your life.