What Is My Business Worth?

A company's value depends on many factors such as: cash flow, financing terms, value of assets, type of business, financial history, condition of equipment and premises, lease arrangement on premises/equipment, competition, location, and future potential, among other factors. By analyzing your business and comparable sales in your industry, your VR Business Intermediary can advise you on the proper pricing strategy for your business. For larger businesses we recommend a third party valuation. Buyers are much more likely to pay top dollar for a business when documented evidence supports the asking price. Most financial institutions insist on a business valuation before they will consider financing.

What is the difference between the terms Discretionary Earnings, Cash Flow, Adjusted Net Income and Owner's Benefit? And what do they mean?

These terms tend to be used interchangeably but they are usually defined as profit before income tax plus depreciation, interest, owner's compensation and other owner benefits. It represents the amount of money the owner has available to pay himself, to invest in additional equipment, to make the note payments on the business and pay taxes.