What’s your business worth? The right answer makes all the difference.
By Caitlin Coakley CHARLOTTE — When it comes to determining the value of your business, there’s more to consider than just the numbers. Yes, cash flow, profit margins and debt all must be taken into consideration — but so must your company’s viability, management staff and the competition in the market. “Every company is totally unique, but in general there are three broad approaches: income, cost and market approach,” said George Hawkins, managing director of Banister Financial in Charlotte. While the income approach evaluates a company’s earnings and cash flow, the cost approach measures the value of tangible assets and the market approach compares the business to similar businesses in the industry.