Retirement. Loan applications. Shareholder buyouts. Divorce.
Understanding what improvements drive the most value. There are
many reasons to value your business. But, manufacturers cannot
necessarily find the answer on the face of their balance sheet
— or rely on industry rules of thumb. Instead, you will need
to hire a business valuation professional to get a reliable
estimate.
Valuators bring value
If you Google "valuation rules of thumb for
manufacturers," a wide range of results will appear. A common
valuation rule of thumb for manufacturers is four to five times
earnings before interest, taxes, depreciation and amortization
(EBITDA). But, many businesses sell for more (or less) than this
range depending on the buyer, the industry and the performance of
the company.
