BUSINESS VALUATIONS

How much could I get for my business? Putting a realistic value on a business is crucial to getting it sold quickly and finding the right buyer. Any business will sell only for what a willing buyer is prepared to pay for it. The marketplace will ultimately determine the selling price of the business.

• Asking Price is what the Seller wants
• Selling Price is what the Seller gets
• Fair Market Value is the highest price the Buyer is prepared to pay and the lowest price the Seller will accept.

The first step is to make sure that your financial data is up-to-date and accurate. Valuing a business takes more than just reading the income statement and balance sheet. There are a number of subjective factors that must also be taken into account. Besides the obvious Financial data, factors that typically influence the Prices are:

• Discretionary Income (Usually very important)
• Fixtures & Equipment & their condition
• Inventory
• Goodwill (the reasonable expectation of future profit)
• Lease & leasehold improvements
• A Franchise
• Customer and/or mailing list
• Patents/copyrights
• Secret recipes/information
• Number of years in Business
• Is owner willing to help transition the business?
• Is owner willing to finance the sale?
• Reason for selling
• Condition of the business
• Reputation of the Business

Extreme Business Brokers has the experience and training, and we can ensure an accurate valuation on your Business by a Leading independent Business Valuation company, which will ensure that your Business is not under-priced, yet be realistic. Please contact us today to get a relaistic valuation.