Assessing the Value of Your Business
Unlocking the true value of your business starts with insight—and experience. At KARIBIZ, we specialize in helping California business owners discover what their companies are worth in today’s market.
Understanding Business Valuation
Know What Your Business Is Worth Before You Sell
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Thinking about selling your business? One of the first steps is knowing how much it’s worth. A business valuation isn’t just a number—it’s a strategic tool that gives you clarity, sets realistic expectations, and guides your next move.
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At KARIBIZ, we use proven methods, market insights, and our deep understanding of local industries to help you evaluate your business value with confidence.
Key Factors That Influence Your Business Value
Every business is unique, and so is its valuation. Here are the major elements that can shape how much your company is worth:
Geographic Location and Size
Competitive Landscape in the Market
Growth Potential & Industry Trends
Financial Records & Bookkeeping
Ease of Ownership Transfer
Optimal Timing of the Sale
Deal Terms & Conditions
Common Valuation Methods Used
To give you the most accurate assessment, we rely on several industry-accepted valuation approaches:
Asset-Based Valuation
Evaluates the value of your business based on its tangible and intangible assets.
Market Comparison Approach
Looks at how similar businesses are valued or sold in the market.
Income-Based Valuation
Focuses on your company’s ability to generate future profits.
Let’s Talk Numbers – And What They Mean for You
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An Overview of Business Multiples
​For small businesses, we often use a multiple of earnings to estimate value. One common metric is “Seller’s Discretionary Earnings (SDE),” which considers your net income plus perks like your salary, interest, and one-time expenses.
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Are Higher Multiples Preferable ?
Typically, yes. Strong books, steady cash flow, and future potential can bump your multiple above the average. Most small businesses sell for a multiple between 1.5 to 3x their SDE.
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Why Do List and Sale Prices Vary ?
Even with a solid valuation, your final selling price depends on market conditions, buyer negotiations, and emotional variables. That’s why it’s important to work with an experienced advisor who understands both the numbers and the nuances.
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Let KARIBIZ help you make an informed decision. Whether you’re planning to sell soon or just exploring your options, we’re here to support your journey every step of the way.
Ready to Learn What Your Business Is Worth?