1. What is Business Worth?

Business worth represents the net value of a company, calculated by subtracting liabilities from assets and adding intangible assets. It provides a snapshot of the company's financial health and potential market value.

2. How Does the Calculator Work?

The calculator uses the fundamental business worth formula:

Where:

• \( \text{Assets} \) — All tangible and financial resources owned by the business
• \( \text{Liabilities} \) — All debts and obligations of the business
• \( \text{Intangibles} \) — Non-physical assets like intellectual property, brand value, etc.

Explanation: This formula provides a basic valuation method, though more complex methods may be needed for complete business valuations.

3. Importance of Business Valuation

Details: Understanding business worth is crucial for selling a business, securing investments, obtaining loans, strategic planning, and tax purposes.

4. Using the Calculator

Tips: Enter all values in USD. Assets and intangibles are positive values, while liabilities are subtracted. Use accurate financial statements for best results.

5. Frequently Asked Questions (FAQ)

Q1: What's included in intangible assets?
A: Intangibles include patents, trademarks, copyrights, brand recognition, customer lists, proprietary technology, and goodwill.

Q2: How often should I calculate my business worth?
A: For established businesses, annually is typical. For growing startups or during major changes, quarterly may be appropriate.

Q3: Is this the same as market value?
A: Not exactly. Market value considers what buyers would pay, which may include future earnings potential not reflected in this calculation.

Q4: Should I include personal assets/liabilities?
A: Only if it's a sole proprietorship with no legal separation between personal and business finances.

Q5: What other valuation methods exist?
A: Other methods include earnings multiples, discounted cash flow analysis, and market comparisons, each useful in different contexts.