Know-How Exchange : Strategy

Based on what you've said, zero.

Businesses are generally value based on assets or cash flows.

Might you find someone willing to pay you something just because it's 100 years old? Maybe.

But it wouldn't be me!

How much is dinner?

In general, a business value is determined exactly the way a house value is determined: It's what the buyer is willing to pay and the seller is willing to sell for.

Google "Business Valuation Methods" and you'll find several methods for determining the value of a business. Which to use depends on the purpose of the valuation. Here's a list for you wonder and amazement:

Book value: The accounting net worth of a business – total assets minus total liabilities.

Tangible book value: Remove any assets that can’t be collateralized

Adjusted tangible book value: Adjusts the tangible assets up or down to their fair market value..

Earnings approach valuation method: this method is based on the present value of expected future earnings.

Market Approach: Based on what similar businesses sold for

Blended Approach: Combine all in a some determined combination

Knowing the value of your business is a good thing in general so you can determine relatively how much your efforts increase the value. For this, you can pick a method and estimate it yourself. But, if you have a specific purpose in needing to know - like you're selling it or buying it or for tax reasons or bank loan reasons, then you may want to employ a certified business valuation expert. You can Google these people too.

I hope this helps.

Wayde

Dear RUMRUNNER40

A 100 year old company that sells, provides, or makes what ... and for whom?

A 100 year old company that sits on what in terms of assets and liabilities?

If the former is worth more than the latter, buyers might be interested. If the latter outweighs the former, you have a serious problem unless the land or building the business sits on (if that's the case) has residual value in terms of development.

Your list of tax returns, financials, corp. book, seal and FEIN#, D&B #, etc? They mean nothing. They have little in the way of tangible, revenue-building value.

The value in your company is its brand equity, its customer base, and its future earning potential, not the list you've given because those things are not deliverables.

The age of the company is one thing, but what it's earned and how its revenues and profits have increased (or not) over the last 5 to 10 years are what counts. And what counts even more is the strategic plan to create additional revenues and profits for the next 5 to 10 years.

I hope this helps. Good luck to you.

Gary Bloomer
The Direct Response Marketing Guy™
Wilmington, DE, USA