Sometimes it’s nice just to have an idea of what your business is worth… even if you don’t plan on selling it. Admittedly there is a nice feeling associated with seeing the equity value and saying “WOW, my business is worth $X (hopefully many more X’s). For that we have ‘rules of thumb’, which I am going to break down. #1 Your Business Is Worth a Multiple of Discretionary Earning. The valuation of small businesses that are established more than 5 years is heavily weighted on a multiple of their discretionary earnings. As a small
By: Corey Philip | Updated: February 1, 2023