How To Value A Business In 5 Minutes Or Less

In this video, we're going to discuss how to value a business in 5 minutes or less. We'll show you how to use a few simple tools to get a quick estimation of a business's worth if you're considering buying or selling.
We are joined by Trent Lee of 1st Choice Business Brokers to help us navigate to complex terrain that is determining a business’s value.
Learn more about Trent Lee 👇
Email: [e-mail]
fcbb.com/
Is it possible to value a business in 5 minutes or less? The answer is a bit more complex but the answer is surprisingly never less.
Welcome to the Anderson podcast, where we go over topics related to business and real estate. Toby Mathis, Esq., our host, is ready to deliver another spectacular installment to the show with the help of a special guest.
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The act of valuing a business means that you are trying to determine what the “fair market value” of a business is. The fair market value is not necessarily the price that someone would pay for it today, but rather how much they would pay if they bought it from you tomorrow.
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Show Notes:
0:00 Intro
1:30 Trent’s Past Work
5:00 Rules of Thumb of Industry
13:50 Numbers to Watch
22:10 Buying & Selling
29:55 Industry Consideration
36:00 Keeping the Business Running
43:00 Outro
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ABOUT TOBY MATHIS
Toby Mathis, Esq. is the best-selling author of Infinity Investing: How the Rich Get Richer And How You Can Do The Same. Toby is a tax attorney and founded Anderson Business Advisors, one of the most successful law, tax, and estate planning companies in the United States. Learn more at aba.link/tobyaba
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The information provided in this video should not be construed or relied on as legal advice for any specific fact or circumstance. Its content was prepared by Anderson Business Advisors with its main office at 3225 McLeod Drive Suite 100 Las Vegas, Nevada 89121. This video is designed for entertainment and information purposes only. Viewing this video does not create an attorney-client relationship with Anderson Business Advisors or any of its lawyers. You should not act or rely on any of the information contained herein without seeking professional legal advice.
#businessideas #businessowner #smallbusiness

[@melaniediaz9017]

So much great info! How can i get a consultation??

[@TobyMathis]

You can schedule a FREE 45-minute Investment Strategy Session by visiting aba.link/d13c5e

[@daver5960]

Great video..! To those of you whining about the 45 mins, wake up and realize it takes time to teach you how to do it in 5 minutes and a good lesson is worth the time.

[@neerajchaudhary1821]

Shouldn't it be a 5-minute or less video?

[@RokSlana]

Cool. This man explains things in a clear way so a layman such as myself can understand it. Thanks!

[@TobyMathis]

You're very welcome! Thank you for watching!

[@a.s.r.3661]

Great discussion! Happy and Safe Holidays!

[@Tealeafsong]

Fascinating!

[@soyourrealtor]

Glad to find this information

[@solargiousa]

Great info. Thank you. What are some of those co,s that Trent mentions (37:38) that teach how to run/grow bsns ?

[@andersonandrew112]

Great video BTW this is excellent content

[@absoliut]

Thank you .Experienced and knowledgeable guest

[@TobyMathis]

I really appreciate your feedback! It means a lot to me that you found the guest to be experienced and knowledgeable.

[@SigmaDG]

How would you recommend approaching a direct competitor to acquire them? Getting into discussing financials could be sticky.

[@kaymwando8914]

I enjoyed the video man, I am entering this field and I love your practical outlook

[@NeedsMoreToys]

One of the better videos

[@pricecontrols]

great chat

[@user-bd5xr1he1c]

what about inventory when your a distributer!, were does that piece fit in?

[@vladcutshair]

This is great thank you for this interview

[@TobyMathis]

Thanks for watching!

[@FreedomCapitalCity]

great info !!! thank you Both !

[@TobyMathis]

Glad you enjoyed it!

[@dmark6699]

Heard about a guy who was buying a small radio station and everything looked good on paper. What he didn't realize ithe leased land that the radio towers were on the lease was not going to be renewed. The cost of leasing or buying new land and moving the towers was going to cost hundreds of thousands of dollars.

[@cryptomd4606]

Good day! Can you do a video focusing on LLC taxed as C corp? I think it will work best for my situation. Thanks

[@TobyMathis]

Thank you for your suggestion! I'll definitely consider creating a video on LLC taxed as C corp.

[@knockknock1246]

Happy Yule Tide Carol's!!!!!

[@andersonandrew112]

I'm in construction, and the owner of the company said he did $3M gross revenue, had $2.8M going out the door, and thinks the value of the company is like $5-6M with no assets other than perhaps 40k in used tools. Sounds to me $1M is more realistic for 200k cashflow and no assets.

[@dragonglass422]

Hi i want to work for this guy. I need a mentor

[@kalebbillig3472]

Sounds like most businesses don’t understand how marketing works - they don’t know how much they can spend to acquire a new customer - they’re inscaleable

[@TobyMathis]

Interesting perspective, thank you for sharing.

[@laviolist]

Great video. Thanks Troy. Toby - do you have a video that covers how to set up a business that wants to acquire other businesses?

[@TobyMathis]

You should check out my video I did about acquiring existing businesses. It's a great in-depth podcast I recently recorded =) kzbin.info/www/bejne/b53IcoWkpspld5o

[@jasminefedoriv1880]

Just watched this video which I found very helpful. However I had checked out Trent’s website and I’m running into the same over priced business. Practice what you preach…I’m kinda disappointed.

[@judyhall5624]

Sounds more like a business real estate advertisement...hmmmm

[@innerscorecard9433]

well then how come the video is 45 min long? LOL

[@bigbilltoady412]

5 minutes or less in a 45 minute video.

[@EPLrealty]

Paying multiples of 3 to 5 range under a million or above one million 5 to 8 range??? That is ridiculous to pay those multiples. We are not talking about IBM or Apple. I merge a lot of companies, you would have to be crazy to pay those multiples. I would never use a business broker, you can find deals all day long without them and pay .8 to 2.5X SDE. Most brokers represent the seller and will not share commissions so you as a buyer have no one really working for you, find a consultant to help you buy. Toby is amazing but sorry you will go broke quickly paying these multiples.

[@joshuahuihui5913]

5 minutes? The video was 45 minutes long. Does it take an hour to cook minute rice?

[@TobyMathis]

Thank you for watching! The 5 minutes mentioned in the title refers to the specific part of the process. Sorry if I mislead anyone.

[@spaideman7850]

how to value business in 5minutes, but video 44 minutes

[@TobyMathis]

=)