There are more than 10 ways to rate your company. Each method gives you a slightly different answer. One of the most common methods business brokers use is to evaluate your business based on how much money it will make in the long run.
The business broker then gives the money away for today's value. This allows the business broker to have a clear understanding of the value of the pitching & investment tools bundle in its present value.
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With online calculators, assumptions have to be made to generate estimates. Given the value of your company's profits, you need to understand how much real money you have in the company. Perhaps the biggest player influencing this money is the financial officer. Unfortunately, the tax office wants a large portion of your income. If your business has a $ 100,000 profit, the bank will give you less after paying your tax bill, like $ 100,000. B. Cash.
Another basic assumption that needs to be made is what we refer to as "weighted cost of capital". This is more simply called the risk of borrowing money from a business. If your business offers low risk and your future income is guaranteed, that figure drops to around 4%.
However, most small businesses have a high risk that profits will remain constant over the next 10 years. Therefore, we apply a risk factor of 15 to 20% or even more for companies with a higher risk.