Are you trying to determine the value of a business? You can determine the value of your business a number of ways. So, if you are selling your business, please be sure to meet with your attorney. Plus, remember that we are highly experienced in selling commercial real estate and businesses in the Florida Keys.
For informational purposes only, here are brief summaries of some of the various ways people determine the value of their businesses:

Discounted Cash Flow Business Valuation Method

The Discounted Cash Flow Method is usually used to figure how much of a loan the actual cash flow of your business can support. The DCF approach is a form of intrinsic valuation. It’s by and far the most detailed and thorough approach to valuation. To learn more about using this method for valuation, check out this useful website.

Capitalization of Earnings Valuation Method

Capitalization of Earnings is a common valuation method for small businesses. It’s determined by dividing the expected business economic benefit by the capitalization rate. The capitalization rate represents the risk associated with receiving this benefit down the road. To learn more about this form of valuation, check out this webpage.

Excess Earnings Valuation Method

The Excess Earnings Method takes the return on assets and separates them from other earnings. You can estimate your business’s net tangible assets by subtracting the business’s adjusted liabilities from its tangible assets. Once you’ve estimated the net tangible assets value, check out this handy website for the formula for this valuation method. This is considered a pretty subjective way to determine the value of your business though, so keep that in mind.

Balance Sheet Valuation Method

You can also value your business using tangible assets, or the assets you own in physical form like land, structures, equipment, and inventory or in cash and stocks in other companies. This won’t include the value of a trademark or goodwill. To learn more about this method, check out this webpage.

Value of Specific Intangible Assets Method

This method tells buyers the value of your intangible assets considering that buyers won’t have to create the intangible assets themselves. These are non-physical assets like patents, brand equity, proprietary tech and things like that. To learn about three ways to determine the value of non-physical assets, check out this article.

RE/MAX Keys Connection

Upscale, Comfortable Commercial Real Estate Office

The RE/MAX Keys Connection office is located in the Historic Heritage House in the heart of Old Town, conveniently located immediately nearby major downtown hotels. Our unique, cafe-style real estate office offers our valued clients a welcoming, upscale, professional environment. Enjoy complimentary beverages, free wi-fi, and a private conference room or expansive front porch, depending on the level of privacy you’re most comfortable with.

Experienced Commercial Real Estate Brokerage Company

RE/MAX Keys Connection’s owner and broker Curtis Skomp is one of South Florida’s top commercial real estate brokers. With over two decades of experience and a CCIM (Certified Commercial Investment Member) designation, Curtis has brokered commercial real estate including industrial properties, shopping centers, strip malls, trailer parks, bars, restaurants, hotels and multi-unit apartment buildings. Unlike many brokers, Curtis isn’t intimidated by bank foreclosures either.
RE/MAX Keys Connection offers clients international exposure with local service. Our service area includes  Key West, Big Pine Key, Marathon, Islamorada, Key Largo, and all of unincorporated Monroe County.  Our office is fluent in Spanish, which is highly important when doing business in Southern Florida.

Contact RE/MAX Keys Connection Today!