How do you know what a business is worth? If you’re really about to put some money on the line, see what actual businesses have sold for so you can compare “apples to apples”.
It’s not cheap ($39) but it covers 50 industries and if you’re purchasing a franchise or otherwise wagering your long term welfare on this investment, it’s cheap protection.
From BizBuySell.com
Gain insight into businesses for sale. Analyze the asking price, gross income and cash flow averages (plus average and mean multipliers) on businesses currently for sale and recently sold.
http://www.bizbuysell.com/valuation/
Harry Hvostov on September 15th, 2008 at 12:47 pm
Private company sale databases such as the well-known BIZCOMPS and Pratt’s Stats, report over 20,000 actual small business sales – across some 700 industries.
You can get a very accurate assessment of your business market value by comparison to similar business sales.
Here is an example of such business market value reporting:
http://www.valuadder.com/buy/business-pricing-report.html