Many people will assure you that there are specific Greg Gaines Rams Jersey , scientific ways to value a business and most people believe that this dark art is only known to the select few who are paid vast sums of money for their services.
If you speak to accountants, business brokers, investors or venture capitalists they can give you chapter and verse on how to apply some of the theories. They can tell you about Enterprise Values, Discounted Cash Flows Bobby Evans Rams Jersey , PriceEarnings multiples, and multipliers of Revenue, EBITDA, EBIT and PBT. The explanations will be filled with jargon and after listening for 5 or 10 minutes you'll be sitting there in a trance of confusion.
Even senior corporate lawyers and experienced business people have it set in their minds that those who advise on and buy businesses know exactly what they're talking about and can use their skills to determine an exact valuation for what your business is worth.
In reality David Long Rams Jersey , there's only one real measure of what your business is worth. There's only one key that determines how much you will get for your business or anything else that you want to sell. It's the secret that gets continually overlooked and is the cause of much stress and debate around the business world.
The only real measure of what your business is worth is how much someone else is willing to pay for it. It's that simple. The value of your business is wholly determined by the amount of money someone else would be willing to give you to take it off your hands.
Now, although this is a simple, and much overlooked secret, it doesn't come without its challenges.
The first major challenge is that the potential buyer often won't tell you what they're really willing to pay. This is all part of the negotiation game Darrell Henderson Rams Jersey , and its happening everywhere from the haggling that goes on in a Moroccan s