Book Value of a Business (3x EBITADA)

What is the book value of a business? You’ve probably heard the common rule of thumb: a business is worth roughly 3 times its EBITADA (Earnings Before Interest, Taxes, Appreciation, Depreciation, and Amortization). While this provides a quick snapshot, it often leaves significant value on the table.

The Problem with traditional book value:

Traditional valuation methods with businesses valued under 5 million, focus primarily on financial ways like EBIT or EBITADA and overlook the crucial intangible assets that drive a business’s true worth.

Growth Concepts: A New Approach:

At Growth Concepts, we go beyond the surface. We believe in uncovering the maximum potential value of your business and documenting it so a potential buyer, loan officer or investor could realize what you have and pay a higher selling price.

Here’s how:

The “14 Immutable Laws of Business Value“: Our approach is rooted in proven principles that guide us in identifying and quantifying intangible assets.

Analyzer II 3.0: Our proprietary machine learning tool analyzes hundreds of thousands of business model variations, revealing hidden value drivers that traditional methods miss.

Intangible Value Assessment: We meticulously evaluate and quantify the intangible assets that contribute to your business’s overall worth and document these intangibles in a business value plan.

What This Means for You:

Instead of a generic 3x EBITADA valuation, we provide a comprehensive assessment that reveals the true value of your business and then help your realize that higher evaluation. We help you understand and could leverage the intangible assets that drive growth and maximize your return. Typically our customers receive a 3 to 5 times increase in discretionary cash.

Stop leaving value on the table. Discover the hidden potential of your business with Growth Concepts. Ask for a complimentary review of your particular situation.