How much is a company worth ?

[hotfemail]

Is it possible to guesstimate the value of a company ? I am being divorced and we owned a company together which he forced me to sign over to him. I will be seeing a solicitor eventually but just curious as to how we will work out what the business is worth when it comes to a settlement. thanks

[legend759]

Usually got on threee times annual turnover tops.But depends on the business and any debts owed.Plus if there are orders on books or if business is on downturn.

[hotfemail]

hi legend - thanks for answering - thats very useful. I m ight be richer than i thought ! Ha !
Are you still in Tenerife or back in (Scotland is it ?)

[Finance Guy]

Average that I have seen companies go for of late is between 3-5 times annual profit.

But, as legend says, many other factors come into play.

Good luck

[Oneeyedvic]

three times annual turnover?

Wow - that would be good.

As Finance guy says - a rule of thumb would be three times average profits over the last three years.

[Twenty20]

The value would be based more on any profits rather than the turnover. You can have a massive turnover but the company might not be profitable. An accountant would be a better adviser as to the value of a company than a solicitor.

[fredpuli47]

An accountant is a better bet than a solicitor.Remember that a company may have enormous, and enormously undervalued, assets. It may own property which is in the books at a great undervalue: there's no reason for accounts to show a current market value of e.g its factory or offices.The land and property of a company might have development value. It can have a big turnover, make a profit or a loss, and be sitting on assets worth millions in development then and there which any good, and unsentimental, businessman would realise at enormous profit.