How Much Does a Small Business Valuation Cost?

The question of how much it costs to carry out a valuation for a small business may make many small business owners shy away from a valuation for their business. The truth is that the cost of business valuation can be low. Here is everything you need to know about the question How Much Does a Small Business Valuation Cost?

The truth is that the cost of business valuation can be low. Here is everything you need to know about the question How Much Does a Small Business Valuation Cost?

Valuing a business involves determining its worth based on several factors, including its current market value, projected future earnings, and other assets.

The valuation process is no difference between large businesses and small businesses. But the main difference is the budget of the company. Small businesses, by their very nature, have lower financial resources. As a result, they will only sometimes be able to find the budget necessary to carry out a company valuation.

In this article, we will present two alternatives for business valuation - a business valuation performed by a company valuation expert and a business valuation performed using valuation software. Let's see what the ideal solution is for small businesses. So here's everything you need to know about the question How Much Does a Small Business Valuation Cost?

The first question we need to ask is why would a large company or small business need to know its value? There are many reasons why a business needs to know the value, such as:

1. A better grasp of your assets

2. Evaluates business performance

3. Attracts more investments

4. Helps map the future course

5. Improves how you manage your business You can read about these five reasons in the blog post: "5 Reasons Why Not Knowing Your Business Value Could Halt Your Progress"

Expert Valuation vs. Software Valuation

Now that you know why business valuation is essential, we can explain the two possibilities for getting business valuation - Expert Valuation and Software Valuation.

Expert Valuation is a company valuation conducted by an expert specializing in companies' valuation.

Software Valuation is a business valuation performed using dedicated software, which company valuation experts developed to enable company valuation quickly, and without mistakes.

 

Each of the ways has advantages and disadvantages. In principle - an evaluation by an expert is more expensive and will take more time, and if you need to re-evaluate the company in the future - you will have to invest the amounts once more. On the other hand, valuation software will allow you to make infinite changes without much effort and at a low cost.

 

If the software is excellent, you can forego the services of a company valuation expert and get the same result. An example of such software is Equitest software.

 

What is Business Valuation Software

A business valuation software is a computer program sold as a SAAS (Software as a Service. The business valuation software is based on the "Valuation as a Service" Concept.

You can read further about Valuation as a Service here.

 

These programs allow you to enter data about the company's assets, liabilities, revenues, and expenses to calculate the value of the business.

 

How Much Does a Small Business Valuation Cost?

And now to the "one million dollars" question - What are the costs of valuation made by experts and the cost of valuation made using the software?

  

Expert Valuations Cost

An expert business valuation will cost between 1,000 USD - 10,000 USD, depending on how much work needs to be done. 

 

 

Software Valuations Cost

The cost of software valuation can range between 99 USD to 1,000 USD. Equitest, for example, allows the user to start the valuation for free - and pay in case he wants the report. The prices of the plans start at 99 USD.

You can start for free here.

 

The answer to the question - How Much Does a Small Business Valuation Cost 

The answer to the question - How Much Does a Small Business Valuation Cost - is simple - between 99 USD and 10,000 USD.

Since business valuation software is an excellent substitute for expert valuation - you can get your business valuation software for 99 USD in 1 hour.