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3min chapter
Negotiate and Make Decisions Like a Pro with James Clear
The EntreLeadership Podcast
How to Value a Business for Sale
A small business is either worth a multiple of net profit or it's worth book value, whichever is more. Book value is the receivables minus the payables plus any hard assets like inventory. You don't mix these methods. The best method is a simple multiple of the, a simpleMultiple of the, of the net profit. And so you're at about three and a half times your net profit is your multiple.
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