I would like to value my business so I can sell it. Is there a multiple I could use as a rule of thumb which would be accurate?

Q. I would like to value my business so I can sell it. Is there a multiple I could use as a rule of thumb which would be accurate?

A. No. Multiples are not recognized by the IRS as a valid valuation device. When valuing a business for sale, it is wise to invest in a valuation. Valuations of businesses are complex and require expertise. Simply using a multiple ignores too many contingencies and the like to be effective as a valuation device.