Broker Check

Business Valuation

The Value of a Business

It is a common misconception that there is only one factor to consider when determining the value of a business. In reality, there are several factors that an individual should take into account when attempting to discern what a business is valued at, and we at The Olsson Group acknowledge and utilize each of these factors when you use our free business valuation service. The two values that are most commonly sought after when valuing a business is the fair market value and the liquidation value. We can help you discern both of these values regarding your business.

The Types of Values

When our experts value the entire company, we need to distinguish both the asset value and the equity value. The majority of small businesses are sold as asset sales, but the majority of middle-market transactions involve equity sales.

These are the types of values that we consider when valuing a business for its fair market value:

Client Centered
  • Asset Value: the value that only includes inventory and supplies, fixed assets, and intangible assets
  • Equity Value: the value that includes everything listed in the asset value as well as liquid financial assets less all liabilities
  • Enterprise Value: the firm’s value as a functioning entity; facilitates the comparison of companies with varying levels of debt

The value that you are looking to assign to your business will ultimately depend on the reason that you are enlisting our business valuation services. Contact us today to determine which value most strongly represents your business and how you can get started valuing your business.

Have a Question?

Thank you!
Oops!