The Business Valuation Calculator helps you determine the resale value of your business. This will help you identify the areas where your business needs to improve in order to increase it value to potential buyers or investors..
How to calculate business valuation
In order to determine the value of your business, you will need several key metrics including gross annual revenue, annual profit, customer life time value (LTV), customer acquisition cost (CAC), growth rate as a percentage, churn rate as a percentage, and other key information.
These are the numbers potential buyers or investors will use to evaluate the business and determine the overall risk and return potential.
While this calculator is not comprehensive, and may not cover all industries or business models, it’s a great starting point for you to understand the overall factors that affects a businesses resale value in the market.
We will look at all the factor involved in more details, so that you have a clear idea of what they mean, why they are important, and tips on how you can improve each one.