A business valuation is a process, made up of a set of procedures and parameters used to determine, within a range what a business is worth. While this sounds easy enough, getting your business valuation completed properly takes a lot of preparation and thought.
There is no one way to establish what a business is worth. That’s because business value means different things to different people. Ultimately, your business is worth what someone wants to pay for it.
A business owner may believe that the business connection to the community it serves is worth a lot. An investor may think that the business value is entirely defined by its historic income. In addition, economic conditions affect what people believe a business is worth. For instance, when jobs are scarce, more business buyers enter the market and increased competition results in higher business selling prices.
The circumstances of a business sale also affect the business value. There is a big difference between a business that is groomed, prepared and well organised than a business that needs a quick-fire sale due to reasons beyond the control of the owner.
Work with us to help you untangle the mystery and complexity of preparing your business for sale.