We've all been here: "This person left a top job at a top company to focus on building his own. There are basic financials for this company and he is so well connected and respected that he MUST be making money! (and it has been in existence for the past 5 -8 years)"
So how much is his company worth? Survey says there are multiple ways of doing this, and it depends on whether the business is private or public. (Public businesses issue stock in an IPO to raise funds to expand and grow. While these are easier to determine net worth, a prospect's ownership and therefore proceeds are reduced.)
You have several options, but I like these best:
- Public Company
- Find the balance sheet through Yahoo! Finance.
- Identify the company's Total Assets.
- Identify the company's Total Liabilities.
- Subtract Total Liabilities from Total Assets.
- Private Company
- Identify the industry, size, and type of the company.
- Go to Global BX to view companies currently for sale to get an estimate for a company's net worth.
- While his is not as precise, it might be as close as you can get for a private company.
Note: to calculate personal net worth, use the
Net Worth Calculatorr at CNN Money. It's really simple math of subtracting debts from assets. I had fun doing this for myself. So try it.
Note 2: If yo go here:
Vertex42, you can download a net worth calculator for MS Excel.
Have fun prospecting!
