# Suggestion for estimating business value?



## mlwhite79 (Nov 10, 2013)

For those facing a divorce settlement, does anybody experience or preference with a valuation tool that quickly estimates the value of a business before spending money on an appraiser?

Thanks for your help! :smthumbup:


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## YupItsMe (Sep 29, 2011)

Depends on your industry and level of success compared to others within it. Google it.


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## WorkingOnMe (Mar 17, 2012)

Net profit plus depreciation plus owner salary. Multiply by 4 or 5 depending on how risky continued success is. 

That's a very generic ball park. Really it's highly dependent on the industry.


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## mlwhite79 (Nov 10, 2013)

Is anybody familiar with a website or service that could help?


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## seeking sanity (Oct 20, 2009)

3-5x EBITDA

How to Use EBITDA to Value Your Company | Inc.com

or 

Yearly revenue x 0.7 to 1.2 - depending on how unique/systemized the business is.

Either of these would give value for a typical small business. If you had some IP or could prove greater value in other ways, that would boost it. Small business is generally worth less than the owner would care to admit.


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## Homemaker_Numero_Uno (Jan 18, 2011)

Well, considering a lot hinges on the value of the business, you should use a professional and get two separate estimates, including their method and calculations. 

If you use a cheap web service, it can and will be questioned.

If there's any kind of intellectual property or process that also needs to be valued, along with things like good will, customer base, existing contracts with customers and employees, etc.


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## mlwhite79 (Nov 10, 2013)

I'm sure that professionals are great at what they do, but right now all I'm really looking for is a tool or service that can provide a rough ballpark estimate - full-blown professional valuation.

It doesn't have to be "cheap," though, for a quality service. Does anybody have any recommendations?


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