How much is my business worth?

IT DEPENDS.

Similar to other investments the value of your business is linked to its ability to earn and grow future profits. As a business owner you may be so focused on day-to-day operations, evaluating what the future may look like isn't a priority. While some owners are just curious what their business is worth, you may need a formal valuation if you are considering selling your business. 

Your business intermediary assists in evaluating historic performance and future projections, looking for "add backs" that increase the "Seller's Discretionary Earnings", and evaluating comps and market intelligence to assign a value range for your company. 

Lastly, it is important to keep an open mind. You've put your sweat equity and more into your business, however, when asking "What is my business worth?" the most important answer is "Only what someone is willing to pay for it."  While an advisor can help determine a value range, the market and pool of qualified buyers ultimately drives the price.