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In smaller businesses with an owner’s benefit of $50,000 to about $250,000, the owner will usually also manage the business on a day to day basis.
Positive Factors That Can Increase the Multiple
*The business is a franchise of a well established – And well known – company.
Negative Factors That Can Decrease the Multiple
*The business is part of a weak franchise or one with a bad reputation.
If any of the negative factors listed above exist in your business you are not alone. Almost every business has some problems and they should not stop you from successfully selling.
Business Valuation Multiples – How to Choose the Right Multiple For Your Business
If I go bankrupt can I continue to run my business?
For senior business managers or owners, Bankruptcy is not an option if you want to continue managing your business.
However for those running a business it is not such good news. If you are running a business as a director of a limited company or as a sole trader, you need to be very careful before deciding to go down the bankruptcy route.
The effect of Bankruptcy on company directors
This means that if you are a company director and want to remain in this position, bankruptcy is not an option for you.
As such unless you are able to introduce a new director or can leave the management of your business to other competent individuals, on declaring bankruptcy you would effectively be required to close your business.
The effect of Bankruptcy on sole traders
If you believe that your business will not be able to operate without credit facilities such as an overdraft, then declaring bankruptcy may make continuing to operate your business impossible.
The effect of Bankruptcy on employees
As with a sole trader the law does not stop you declaring bankruptcy and working for a company even in a senior position If your title within the company is known as director, but you are not registered as such at company’s house, then you can still declare bankruptcy.
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