In practical non-financial terms, what is the “real world” value of my business?

In the context of turning the business over to new or different owners, “real world” value amounts to a reasonable price for the business that will reward the present owner fairly for his/her development of a profit producing entity with continuing cash flow potential. The price must also, however, treat the purchaser fairly in that the final price paid is one which can be justified by the income stream of the business in a reasonable period of time and provide an attractive return on investment, beyond the return of the initial investment.

Bookmark the permalink.