Finance In Action: ”An Important Question – What’s Small Business Really Worth?

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This is a discussion so less than 10 sentences is fine. I will send the page that needs to be read. It is less than 1 page long. I also need a reply to a classmates post to the discussion which is provided below. So, 1 discussion post and 1 reply. They don’t have to be long.

This is my classmates post. I just need a reply or comment to it. :

  • What’s small business really worth? Many small businesses are bought and sold without paying attention to facts. Buyers determine how badly you need to sell and the overall state of the economy in determining a price. Those external considerations often impact the price of a small business far more than they should if you are the seller. If you want to get the highest price possible when you sell your small business, sticking to the facts about your small business is the best way to get the best price.A fair way to value your business is to take your net income, add back any personal expenses the business picks up for you and multiply that by a standard multiplier. If the business owns property or inventory, include that amount and subtract your liabilities that from the value of your small business.

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