How much is your business worth if you sold it?
Join Lawrence Mak and Cameron Forbes as we talk about ways to evaluate a business when you are planning to buy or sell.
Lawrence Mak, Broker | RE/MAX Realtron Realty Inc.
Cameron Forbes, MBA, CPA, Broker, General Manager | RE/Max Realtron Realty Inc.
0:48 How much could you get for your business if you sold it?
0:59 There are 2 broad approaches
1:05 1) An income approach to value
1:10 Cash Flow is key
1:25 Depends on the industry, length of time and other risk factors
1:30 Perhaps 3 times cash-flow for an established business
1:45 2) Asset-based evaluation, such as inventory and equipment
2:10 Talk to a professional
2:35 In summary, use an income approach with a multiple based on the industry
2:42 Or base the valuation on the assets such as inventory and equipment
3:18 If you have any questions about your business
3:21 Call me (416) 276-4895