What is the business worth?
With so many varying opinions and experts in the market giving you partial or false advice on the “going price” of a reseller business, it can difficult to sift the fact from the fiction. Understanding the value of any business comes down to two important principals:
- There is the price that someone is willing to pay for your company.
- There is a valuation of your business, and it is not necessarily the same as the price someone may be willing to pay.
The valuation of your business is where you should begin. Setting reasonable expectation of what you can expect to get out of your business will help you get the dollar amount you desire. In clearer terms, the valuation of your business is what the company is worth when there is no actual buyer, and that is the price you will want to know to set goals and/or find the right buyer.
There are financial factors that directly impact the value of your business.
To better understand these factors, ask yourself the following questions: