How do I determine the value of an existing business?
We are considering purchasing an existing embroidery and advertising specialties business. We would like some guidance in how to value the business. We have researched the value of the building, embroidery equipment being used and related materials (hoops, stabilizers, threads, etc.) and determined that many of the samples are provided by manufacturers to encourage purchase of their products. We feel the business is overpriced based on what we have found, but do not know how to value the current customer list and relationships built with vendors. Any help to find a direction to research would be helpful.