The market value of your business is whatever someone is willing to pay for it. However, there are dozens of ways to valuate a business. The most popular ways to valuate a business includes multiplying your net profits by 6 (4-12) is common depending on the business, the business industry, economic growth, and a plethora of other facts. In some industries, 3 times revenues is also an acceptable way to valuate a company when gross margins are between 33% – 48%.
To sell a business, you will need a sale contract which is used to depict all terms of the sale, including it’s price. You will be well advised to seek the counsel of an experienced attorney to go over the particulars of your business and how best you can protect your legal interests.