Opinions expressed by Entrepreneur contributors are their own.
Determining a business’ value is not all about adding up revenue and subtracting expenses. While an important piece, these hard numbers are only half the equation for computing what a company is worth. To come up with the true value, we also look at factors like the level of owner involvement, company goals and growth opportunities. When we use the complete equation, we get a comprehensive picture of a business and can better understand the story of its past, present and future.
Calculations may vary depending on the company, but in a healthy one, there is about a 50/50 split between
→ Continue reading at Entrepreneur