What is the value of my company

What Is the Value of My Company? (And Why Rules of Thumb Fall Short)

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If you’re asking, “What is the value of my company?” – you’re not alone. Many business owners don’t have a clear answer and often rely on rules of thumb – like revenue, intuition, or what seems reasonable to them.

That works until you need to make a decision that depends on having a well-supported view of value.

Whether you’re bringing in a partner, structuring equity, or planning succession, making guesses about your business’s worth can put you at a disadvantage.

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How Do You Determine the Value of Your Company?

There are multiple approaches to calculating what your company is worth:

Asset-based valuation – What your business owns minus what it owes
Income-based valuation – What your business earns and what that’s worth to a buyer
Market-based valuation – What similar businesses are selling for

The right approach depends on your industry, business model, and why you need the valuation. A professional valuation gives you a defensible number backed by market evidence and clear assumptions, not guesswork.

Why You Need to Know Your Company’s Value

A business valuation offers advantages beyond preparing for a sale. It is essential when making strategic decisions that require a clear understanding of value.

Considering offering a partner 20% equity? How do you know that’s fair or if you’re giving away too much? If an investor expresses interest with an offer of $500K, what proportion of ownership does that investment warrant? When planning succession, what are you actually handing off?

Knowing your company’s value means you negotiate from strength to make decisions based on real numbers, not rough estimates.

Get a Clear Answer

Stop guessing at what your business is worth. Our business valuation team will give you the support you need to structure deals, plan growth, and make strategic decisions with confidence.

Visit gtllp.com or send us a message.

Business Strategy

3 Mar 2026