0
How do you determine the value of a small business if a potential buyer approaches you?
Wiki User
∙ 8y ago
Three years net earning.
Plus the value of any chattels, which are inventory, machines, fixtures, buildings, vehicles and the like.
.
It is exactly the total value of all the shares of that company.
If you want a buy company, you should buy 100% shares of that company.
Like any other income generating asset, a small business is worth the present value of future earnings. Many people simplify like the first answer with a formula, such as 3 years of earnings or 1 times annual sales or something like that.
Normally, you would include a calculation for the balance sheet, too. Thus, if you have capital equipment, cash, etc. and no debt on the company, then you would increase the value by that amount.
The responses you'll see here are just guidelines and since you'll only do this once or twice in your life (most likely), you would do well to hire an attorney and a professional advisor, such as an investment banker. The money you'll save on making a bad deal will more than pay for such advisors.
Wiki User
∙ 8y ago
Add your answer:
Earn +20 pts
What is Business buying characteristic?
Multiple, varied buyer influences
What is a wholesale buyer?
A wholesale buyer is a person or business that purchases from a wholesaler or manufacturer and then sells direct as a retailer or sells to a retailer.
Can you sell a non-profit business?
As businesses are a created real entity and profit or loss depends on how it is run and other environmental and Time dependence factors. If you can find a buyer who is confident (have potential to turn it around to profits) you can sell it.
In a business to business transaction the seller offers the buyer a 2 percent discount for paying a bill early . Assuming the buyer took advantage of this offer how much would be discounted on a 1000?
The 1000 would be reduced by 20 to leave 980 to pay.
What do business brokers do?
Business brokers job is to help both the buyer and seller in the selling process. They can just be one person or a firm in most cases.
When a potential buyer approaches a seller to buy materials from a seller its called?
A potential buyer is a potential customer. With that said, every effort should be made to the potential seller to accommodate the customer.
What is the different between actual buyers and potential buyers?
actual buyer is that which is actual buyer and potential buyer is that which is potential buyer..............
What is difference between the actual buyers and potential buyers?
actual buyer is that which is actual buyer and potential buyer is that which is potential buyer..............
Compare between an actual buyer & a potential buyer?
A potential buyer is someone who MIGHT buy something. It is not yet determined that he/she will purchase. On the other hand, an actual buyer is someone who WILL buy something. There is an assurance that he/she will purchase.
why is it important for a business to business to be influenced by the business buyer behaviour?
In a business, the business buyer plays the most important role. It is the buyer who actually influences the business. A company will only do well if its buyers respond and give a feedback of the product or services which the company serves. Hence for any company, the buyer is like a "God".
What is difference between actual and potential buyers?
An actual buyer is someone who is committed to buying a product whereas a potential buyer is some who is interested in buying, but may not.
What is buyer mean?
A buyer is someone who is willing to purchase and has the potential to purchase a good or service. A buyer is a person who buys goods and products from another person.
What is business buyer behavour?
Business buyer behavior refers to how a customer will respond to a particular product. This is very important for the marketing team.
Is it okay to show a potential buyer your tax returns?
That is up to you.
Why are logos great to use?
Logos are great to use because they build brand recognition through repetitive exposure to the potential buyer. They also attract more attention to your business name making it easier to remember.
What auction is the most common auction model for large purchases?
A reverse auction is the most common auction model for large purchases. During a reverse auction, the sellers bid to obtain business from a potential buyer.
What is a job of the buyer?
A buyer agent has the job of acting as an agent for someone who wants to buy something. Often this might be a property but sometimes it is a business that the buyer wishes to acquire.
