How Do You Value a Business?

For businessis, i'll say, a half million dollars to a million and a half of ibitie or seller's discretionary earnings. 90 % of them trade for somewhere between three and six times that figure. valuation is a function of sustain ability, growth, profitability, and how interested the market is in that particular industry at that time. When you're trying to assess what to buy a business for, go to people who are buying businesses. Talk to your friends that are in the business. And then if you can get access to any on line data sets, and some are semi free, some you have to pay for.