A Beginner's Guide to Business Valuation: Lessons Learned from 20 Years in the Trenches

The idea of small business, like mom & pop business has great independence appeal. However, they are a lot of work, including bookkeeping and records. It is easy to go out of business, due to extreme competition. Investment in larger market stocks is safer and the multiples of earnings are higher.

This book carves out critical components that helps you prepare for selling. From a buyer perspective, it's helped me understand what to look for in potential companies to buy as well.

If you're a business owner or aspiring entrepreneur, let me tell you about "A Beginner's Guide to Business Valuation". This book is a game-changer when it comes to selling your business, and the author Jacob Orosz knows what he's talking about. He has helped sell over 300 private companies, and he shares his expertise and practical advice in this book.The thing about valuing a business is that it's complex and confusing, but Jacob breaks it down into easy-to-understand terms. He covers everything from measuring cash flow to working with an appraiser and determining the profitability of your business. He even delves into the factors that impact the value of your business, such as your industry, customer base, geography, inventory, employees, and finances.What I love about this book is that it's not just full of theory and technical jargon. It's packed with examples, charts, and tools that make it easy to understand and apply to your business. It's like having a business expert in your pocket.Don't just take my word for it, though. Readers are raving about the book, saying that it's a must-read for anyone selling or buying a business. Many wish they had read it before selling their own businesses.In short, if you're a business owner, you need this book. It's a must-have resource that will help you navigate the complex world of business valuation with ease.

In his book “A Beginner’s Guide to Business Valuation,” Jacob Orosz talks about why it’s difficult to value a business but also why it’s important. He talks about the difference between Middle-Market businesses and Main Street businesses, as well as the difference between public and private businesses. He says “A key task in selling any business is deciding how much it’s worth” (p 32). He gives tips on how to make financial adjustments, measure cash flow, work with an appraiser, determine the business’ profitability, and determine what type of buyer will buy the business. Orosz says, “When valuing a business, the first question most investors will ask is ‘What industry does the business operate in?’” (p 132). They consider things like the type of product, the customer base, the operation of the business, the geography, the inventory, the employees, and the finances of the business. Apparently, Jacob Orosz helped in the sale of over 300 private companies (location 51) and this book reflects much of his knowledge in the area. Therefore, I think business owners can benefit from reading it.

As a business owner looking to sell, I found this book to provide a wealth of useful information, particularly in the area of increasing your business's value - who wouldn't want to know how to do that? The book offers over a hundred strategies and looks at more than 50 factors that can impact value. I found myself taking notes at the margins constantly and sticking post-its in important places I wanted to go back to or be able to refer to. The book was impressively dog-eared after a few days thanks to my note-taking but it is a gem and I’m very glad I bought it. I appreciated the many real life examples which I thought were especially helpful and pragmatic. The whole book was written in such a clear and non-esoteric manner that it was easy to understand, even for someone like me who doesn’t have a background in finance. Thank you, Jacob Orosz, for bringing your 20+ years of M&A experience to helping us in our own business endeavors.

I found this book to be very informative. The author clearly is knowledgeable in his field. These pages contain a thorough walk through of the process of valuating your business, and everything that could possibly happen in the process. This book is a must for anyone who owns a business.

I bought the 2 books - A Beginner's Guide to Business Valuation and The Art of the Exit.. I admit it - I had no idea how a business is valued. And I’m a business owner who wants to sell soon. Before I even put my business on the market, I needed to have some clue as to how much to ask for it. I didn’t even know who to hire for help. But this book really spelled it all out for me, from valuation concepts and the range of values to SDE and EBITDA - and beyond. If you plan to sell your business, don’t skip over this book.

I, like most people, was clueless when it came to the topic of valuing my business. There are so many key factors that can come into play. But this book cleared the confusion for me and provided the succinct and straightforward answers I was looking for. I only wish I had this book to read when I sold my first company. It would have helped me increase its value and marketability with the least amount of money, time, and effort. This is a must-read for anyone in business, both sellers - and buyers, as well as M&A advisers and IBs, too.

When I first began to mull over the possibility of selling my business, I was struck by the reality that I had absolutely no idea what it was worth. Not only that, but I didn’t know who to turn to for a proper assessment. And then, a friend told me about A Beginner’s Guide to Business Valuation. Reading it gave me the motivation and confidence to get my business ready to sell. Do yourself a favor and read this book before putting your business on the market.

After reading The Art of the Exit by the same author, I had to get my hands on this book which delves into the valuation side of selling your business. Fascinating and informative.