How is a business valued?

How is a business valued?

[Intro paragraph: most owners have a figure in mind, and it’s usually based on what they need rather than what a buyer will pay. Here’s how buyers actually arrive at a price.]

It starts with adjusted profit

[Explain adjusted net profit: add back the owner’s drawings, personal and one-off costs, so a buyer sees what the business really earns.]

Then a multiple for your sector

[Explain the multiple and why it varies: risk, demand, how transferable the business is. Link to sector pages.]

See it applied to your business

Our calculator uses the same method. About a minute.

Try the calculator

What moves the price up or down

  • [Sales trend over three years]
  • [How much the business relies on you]
  • [Lease length and rent]
  • [Location and competition]
  • [Inspection ratings, for regulated sectors]

Common mistakes

[Overpricing to leave room, messy accounts, and telling staff too early.]

Key takeaway

[One-sentence summary a reader, or an AI answer engine, can quote.]

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