Quick Texas Small Business Valuation Formulas
admin47 | Feb 16, 2012 | Comments 0
Do you need a quick idea about what your small business in Texas might be worth approximately today? Follow these simple steps to quickly value an existing and established small business in TX:
1. Either prepare or request from your financial adviser your latest 12 month financial or income statement for the business.
2. Find the total gross sales or revenue figure that is generally located at the top of the financial statement.
3. Multiply the total gross sales figure by the most relevant pricing guideline category below. This result will give you a very quick and approximate idea of the value of your small business for very general research purposes.
General Business Valuation Formulas:
- Accounting/CPA Practice: 100% of gross revenues
- Coffee Shop: 45% of gross revenues
- Small Construction Businesses: 25% of gross revenues
- Distribution/Wholesale Business: 50% of gross revenues
- Small Manufacturing Business: 50 to 60% of gross revenues
- Restaurant: 35-40% of gross revenues
- Retail Store: 35% of gross revenues
- Service Business: 50% of gross revenues
Please Note: The small business valuation guidelines listed above are intended to be used for general research purposes only as there are many other important factors (inventory value, years established, customer concentration, competition, manager in place, etc) that could ultimately affect the value of your particular business either positively or negatively.
Get a Free Business Valuation Consultation Now! If you feel you might need a formal Texas business valuation or appraisal performed (especially if its regarding legal issues, partnership issues, estate & tax issues, or buying or selling a business purposes) you can go here to request a free preliminary business valuation consultation from a professional appraiser and then you can decide whether having a appraisal performed is the right choice for you.
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