When a business owner is looking to cash out of their company, the obvious and most pressing question is what the business is worth. The entrepreneur does not have to make this determination in a vacuum. Instead, there are various technological tools that can help the owner get a handle on the business valuation. Here are three tools to use to see what your business is worth.

Accounting Software Programs

Businesses will typically be valued at a certain multiple of their profits or revenues. However, businesses may not have the in-depth data readily available. In addition, there may be certain parts of the business that may be more valuable than other parts. Accounting software can help track the company’s revenue and may even be able to run analytics on the numbers to know where the sales most commonly originate. The business will also be able to know exactly how much its profits are and whether another buyer may be able to make more money by cutting certain expenses or targeting different markets.

Big Data

Accumulated customer data and analysis tools can substantially improve business valuation. There is a story behind the company’s numbers that is unlocked through data analysis. While a business may have a certain revenue number, there may be trends that can make a company even more valuable. For example, the company may be making inroads in a certain market that has higher profitability. Alternatively, the company may have just landed a certain group of customers whose business is poised to grow. Being able to go behind the surface numbers can give a multidimensional look at the true status of the company.

CRM Software

CRM software helps track customer relationships. Some of that information can help you assess the state of your sales efforts. You can use this to assess the value of the company. This software can actually help a business prove how it is profitable. It can demonstrate the sales and marketing infrastructure that is already in place and can be a part of the company’s valuation. Applying a scaling factor to the existing relationships can give a sense of what these business relationships may be worth in the future. CRM software can also help provide a window into some of the architecture behind the sales to help with valuation.

Entrepreneurs do not have to guess about what their company is worth when they decide to sell. Instead, using some technological tools, they can get a more precise number as a value or defend a high asking price.

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