Business Valuation Tool

Business Valuation Tool

The first step in selling your business is to have a professional assessment of its value. A R Business Brokers uses a variety of key performance indicators to help determine the value of your business.

By adding your basic business information, we can calculate both your business value and the probability of selling. Simply click the “Get Started” button to begin the fast 11-step process.

GET STARTED

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STEP 1 / 11

Enter your gross receipts from your business activities last year rounded to the nearest dollar.

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STEP 2 / 11

Enter amount for one working owner that was expensed.

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STEP 3 / 11

Enter total interest expense (exclude interest from floor plans).

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STEP 4 / 11

Enter the depreciation expense from last year.

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STEP 5 / 11

Enter the Amortization expense from last year, if any.

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STEP 6 / 11

Enter any other Income or Expense from last year that are non-recurring. Examples include moving expense, unusual legal or accounting fees. You may also enter negative numbers if you need to adjust for rent or other expense that a buyer will have that you didn't.

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STEP 7 / 11

Enter perks such as auto, travel, retirement benefits, etc., that are soley for the owner's benefit.

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STEP 8 / 11

The bottom line, what was the profit last year. Ok to enter negative amounts.

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STEP 9 / 11

This is the financial benefit of ownership!

Enter a multiple of earnings from 1 to 5. Example = 2.3. Use a lower multiple for businesses with low SDE (thus high risk) and a higher multiple for those with higher SDE (has lower risks). Said another way; if SDE is below $200,000, use a lower multiple or if above, use a higher multiple. Note, this tool is not recommended for real estate intensive businesses such as hotels, car washes, gas stations, RV parks, etc.

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STEP 10 / 11

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Your Estimated Business Value

Are your Numbers Realistic?

Let's Run a Sanity Check...


On average, what does the business spend annually on new equipment? By way of example, a professional firm could have lower capital expenditures for desks and computers vs an Excavation Company that buys expensive tractors. If you're unsure, a good rule of thumb is the current value of your equipment divided by 10.


Prime + 2.5















Sellers Discretionary Earnings

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This is the financial benefit of ownership!


Annual Remaining Profit

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Would you like to recieve a detailed breakdown of your business value estimate?

Add your email and we will send you a pdf with a detailed breakdown of your results.


Would you like to recieve a detailed breakdown of your business value estimate?

Add your email and we will send you a pdf with a detailed breakdown of your results.

Summary

Description Information Quantity Price
Discount :
Total :

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