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WHITE PAPER

14 Business Valuation Factors Impact On Digital Marketing Agencies - 2022

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Dru Morgan

DIRECTOR

Introduction

The funny quirk about being a business owner is that while our business is most likely our biggest asset, the majority of us have no idea what it's worth.

This whitepaper aims to fix this. Specifically educating how valuation works in the Digital Marketing Industry. Giving agency owners the knowledge they need to increase their net worth.

Real Estate vs. Business Ownership

Owning real estate is great.

 

We can jump on to realestate.com.au, plug in our address and see how much our asset is worth is at any given time.

We also know the factors that influence a house's price. The number of bedrooms. The view. The age of the kitchen. The yard. And can make decisions accordingly.

Being a business owner is not so easy.

There's no website to check and see what our business is valued at. The majority of us have no idea what our asset is worth at any given time.

 

Compounding this, most business owners don't how valuations work. Which factors influence a sales price. What they should be focusing on to maximise their value.

14 Factors In A Business Valuation

While there's no solution (yet) to getting valuations on demand, business owners can educate themselves on what to focus on to maximise their sales price.

There are 14 key factors that professional valuers look at when making their assessments. What they are and how they look for Digital Marketing Agencies are as follows.

1 - History & Past Performance

"How long the company has been in business, how profitable it has been, whether it's growing over time or shrinking"

2 - Reputation

"Customer reviews, employee ratings"

3 - Financial Performance

"Business financial health, and how they're trending"