How Much is My Business Worth?

At TPR Advisor, our team of business valuation experts is here to assist you in determining the value of your business. We can either meet with you to discuss your business’s worth or provide formal valuation reports. For a quick estimate of your business’s value, use our Free Online Calculator today.

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Market Value

For our purposes, let's focus on fair market value, which is essentially the price a buyer would pay for your company in an open market.

Keep in mind that this is a simplified approach compared to more complex valuation practices. Specialized valuation experts provide detailed reports for purposes such as IRS inquiries, legal proceedings, complex financing, and more. These comprehensive valuations can range from $10,000 to $30,000. However, for small business sales, such an in-depth valuation is often unnecessary. Our simplified methods are generally sufficient for determining your listing price and estimating your eventual sale price.

Asset Approach

The Asset Approach values your business by assessing its assets and subtracting its liabilities. Methods within this approach include book value, the excess earnings method, and the asset accumulation method, among others. However, these valuations often have limited relevance to the market value of active businesses. Generally, the Asset Approach does not accurately reflect the value of a functioning business with positive earnings.

Market Approach

The Market Approach is akin to the real estate comparable method. It involves comparing your business to similar companies in terms of size and industry, which typically sell for comparable valuations. This approach includes methods such as the guideline publicly traded company method and the merger and acquisition method (using private sale databases). By researching various databases for multiples of gross sales and earnings, we can effectively compare these to your business. This method is often very reliable and serves as a strong indicator of value.

Income-Based Approach

The Income Approach values your business based on the present value of the income it is expected to generate for an investor. This includes various sophisticated methods such as the discounted future earnings method and several capitalization methods. This approach is a strong indicator of the value of a business with positive income, relying on future projections and growth rates to estimate its worth. Despite this, many people use historical earnings to determine value, operating under the assumption that a buyer will maintain current income levels, which provides a reasonable indication of future earnings.

Governance

In addition to the Advisory Board, Fortress has expanded its business acumen and capabilities through the following appointments:

Manish Sundarjee

An Audit Committee under the independent guidance of Manish Sundarjee of Lipins Partners. Manish provides an additional layer of Governance to underpin Trinity’s core value of trust.

William Buck, Accountants and Advisors

We have also appointed William Buck, Accountants and Advisors, to act as auditors for Trinity Growth. William Buck is renowned for its ‘360 degree’ support philosophy and will add another important element of transparency and trust to the organisation.

Your business is valued at:

A multiple of earnings based on comparable businesses (gross sales or owner’s benefit multiplied by an industry multiple).

Alexandra

A capitalization of net profit (not owner’s benefit, as it cannot be capitalized), ranging from 20% to 50%, or a straightforward multiple of owner benefit.

Alexandra

If your business generates little or no profit, asset value is the primary measure (including goodwill, inventory, equipment, etc.). It can be sold as a whole or liquidated gradually.

Alexandra

We identify businesses to work with and enhance their growth.

Our playbook is proven, and based on decades of experience: good people, good industries, and opportunities for growth.

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TPR Advisors leads in marketing and selling businesses, mergers, acquisitions, and franchises. We connect buyers and sellers with professional services, whether for corporate acquisitions or personal business ownership.