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Business Value Software

Is there any GOOD software that I can plug my numbers into to figure out what the value of my business if before I contact a business broker?

I would also like software that is REASONABLY priced.

Thank you

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Answers (2)
Douglas Batts
Murphy Business & Financial Corporation
Collin County, TX
Premium Broker

Ron, I tend to agree with Julie in that valuing businesses is so complex and subjective that no single tool will be accurate. While there are online formulas and other resources that attempt to help you arrive at a market value for your business, you should expect that any results obtained by using them will give you, at best, a very rough idea.

But before worrying about valuation software, I'd ask you to determine if your business is, in fact, sellable. For example, does your business have solid financials that can be substantiated by tax returns? Can your business operate effectively without you (How dependent on you is your business's daily operations)? If your answer to these basic quesitons is yes, then you can consult with some online resources to get industry multiples to apply to cash flow or gross sales that will generate ballpark valuation results that should be taken with a big "grain of salt". While it always a good idea to be informed, a competent broker will work with you to arrive a a fair market value for your business that you will have confidence in.

Jan 23, 2010
Julie A. Barnes, CPA
Small Business Exchange, Inc.
Travis County, TX

Hi Ron,

There are some business analytics that simply cannot be addressed by a formula - the valuation of a small business is one of them. I have no idea if software exists that pretends to perform this function but I recommend that you save your money.

Please feel free to visit my blog: http://AustinBusinessesForSaleBlog.com for advice about how to place a value on your business.

Good Luck!
Julie A. Barnes, CPA
President, SBX, Inc.

Jan 7, 2010