Our valuation method factors in a number of metrics to give you a ‘ballpark’ figure as a jumping-off point for selling your business.
The metrics collected in this calculator aim to accurately predict the future cash flow and value of the business. We do this by accounting for a number of factors such as:
Knowing the value of your business is the first step in planning an exit strategy. It also provides crucial information for buyers looking for financiers, lenders evaluating that financing, or venture capitalists looking to invest in a business.
The purpose of Alberta Business Sales’ free business valuation calculator is to give business owners who are considering selling their businesses a ballpark figure or a ‘jumping-off point’. For many business owners, calculating the value of your business might be a reality check.
Understanding what your business is worth ensures that you will be able to get the most value for your sale. A crucial part of this process is to start with a realistic listing price that will attract buyers.
So you’ve calculated the ballpark value of your business – so what’s next? While our free valuation calculator is a great starting point, you’ll still need to get a Broker Opinion of Market Value (BOMV).
Alberta Business Sale’s BOMV is a more personalized and in-depth business valuation. This calculation is based on a number of factors that aren’t easily calculated in our free company valuation calculator. Examples of this are tangible and intangible assets.
We don’t include asset value in our simple calculator because it’s often complicated to calculate. That being said, it is an important part of evaluating the listing price of a business or company.
Tangible assets include things like commercial real estate, equipment, and inventory can all increase the value of a business.
Some intangible assets are difficult to put a price tag on and can’t be calculated in a simple formula. Instead, we can evaluate their value as a part of our BOMV. In addition to calculating your BOMV (and consequently, your list price), your accurate valuation can play a significant role in giving a potential buyer a range of financing options.
Selling a business can get complicated – hiring ABS simplifies the process. From business valuation or marketing of your listing to securing financing for potential buyers, Neil and Sharon leverage their 30+ years of experience to achieve the best result for your business. Learn more about our team >