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Buying, Selling and Valuing the Business

  • Tim Mazzarol
  • Sophie Reboud
Chapter
Part of the Springer Texts in Business and Economics book series (STBE)

Abstract

This chapter examines the issue of valuation and the related issues of purchasing and selling a small firm. It highlights the fact that valuation is not a precise science, and there is no established formula for determining how much a business should be worth. It also considers consolidation and harvesting of the wealth from the business. The process of buying, selling and valuing a business can be among the biggest challenges facing the small business owner. In particular, valuation of the business is one of the more complex issues facing the small firm. For many owner-managers the value of their business is not something that they measure in an overall sense. The firm is for them a vehicle for personal and professional growth, a source of income and a place of work or lifestyle choice. However, once the owner seeks to sell their business the issues of how much it is worth comes sharply into focus.

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Copyright information

© Springer Nature Singapore Pte Ltd. 2020

Authors and Affiliations

  • Tim Mazzarol
    • 1
  • Sophie Reboud
    • 2
  1. 1.University of Western AustraliaCrawleyAustralia
  2. 2.Burgundy School of BusinessDijonFrance

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