What is your business worth? There are days when we wish we knew; perhaps today.
Here is a very useful short article to help you start your rational thinking process.
How much is your car worth? Hmmm... Hard to know exactly; depends. Was it just washed? Just in a fender bender? Making funny sounds? What is the make, model, and color? Where it is located? Etc. Perhaps most importantly: Who is the buyer?
It all makes a difference, and your business is similar.
There are a lot of different ways to value a business. No one, no matter how much you pay them, can tell you precisely unless they are making you a current offer in writing that they will actually complete.
If you have gifted a first right of refusal to someone you can expect the valuation will be way lower.
http://www.forbes.com/2009/06/19/flower-shop-valuation-entrepreneurs-finance-taulli.html
Quick thoughts:
Typically real estate is not part of the equation. It is far easier to value and best handled separately.
Therefore:
You have the assets; the value of your equipment etc on a used market.
You have other assets; like accounts receivable and insurance contracts.
You have other assets; like a lease in a good location, this can be a big sales point if you own your own building and can do so for the new buyer,
You have goodwill and perhaps most importantly your referral sources, and your willingness to get them to work with the new owner.
You have your team. A business with a great support team that will work with the new owner is worth far more than one that doesn't have it.
You have your patient's lists and active patients.
You have your income after your wages.
These are the items to value and add up.
Notice, gross sales is not on my list. Gross sales are often talked about by valuation people because it is a number that is easily available, but in Audiology it is useless. If someone starts the discussion by telling you some percent of sales then find a different advisor.
A practice can have lots of sales, and no income. Some businesses have relatively low sales, but because of the location and patients have great income.
I hope this helps you.
And yes, I am always available to talk about this directly.
Rick
