
Before You Buy — Recognizing Small Business Value Drivers
By The BizBuySell Team Small Business Value Goes Beyond the Financials When it comes to determining small business value, one of the most common question buyers ask is, ‘If I buy this business, how much money can I make?’ Yet, it’s important to look beyond the financial records when determining small business value. Oftentimes, financial records can be inaccurate or incomplete. Furthermore, they are intended to help minimize taxes, not show how well the business is doing. Beyond the financials, here are some key value drivers to consider when buying a small business: 1. The Business Has Been Providing a Steady Income for Several Years A business that has been operating for at least 3-5 years is worth recognizing. This means the owner has been able to make some sort…