What “value” actually means in a business valuation — and why the definition decides the answer. Ask three people what a business is worth and you may get three different numbers — and all of them can be correct. Not because anyone is wrong, but because they are answering different questions. “Value” is not a single thing. It is a…

Before you value a business, decide what the value is for — because the purpose decides the number. When an owner asks “what is my business worth?”, the honest first answer is a question back: what do you need the value for? It sounds like a dodge. It isn’t. It is the single most important thing to establish before any…