In the third quarter of 2017, more than 2,500 small businesses were sold. The median sale price was $225,000, up from $200,000 the year before.1 As a business owner, ascertaining the value of your business is important for a variety of reasons, including business succession, estate tax estimates, or qualifying for a loan. There are a…
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Using Business Value as a Benchmark
The ultimate indicator of how well a company and its management are performing is how much the company is worth. Any performance measurement or benchmarking system should include fair market value as one of its primary metrics. With public companies, it’s easy to monitor this metric by tracking share prices and market capitalizations on public stock exchanges….
Demystifying the Discount for Lack of Marketability
Many stocks — such as Walmart, Dell and Google — trade on the New York Stock Exchange (NYSE) or another public stock exchange. Shares in public companies can be converted to cash within a few days. But privately-held business investors do not have the same luxury. Their investments can take months or even years to sell….