ABC’s of Valuation
Whether large, or small, or somewhere in-between, Sunbelt Business Brokers have the experience and expertise necessary to sell your business. When valuating your business, we have the tools necessary to pull information on comparable businesses from many databases both locally and throughout the United States.
It is to a Seller’s advantage to have a professional business broker valuate your business. Though a business owner usually has a good idea of his/her business value, buyers view it differently. We are aware of obstacles than can occur right from the start, and #1 is value! That is why we educate that real buyer initially. How do we do this? Well, if we have done our homework and valued the business properly by using accurate data from the Seller, then we will market it properly to attract the right buyer.
Also, we are good listeners and are aware of questions that need to be asked in the initial meeting. We also remember two important words: “cover yourself”. If you are the seller, you will have to show how you came up with your own value, and that is what we rely on. As a business broker, we walk a seller through that process of value.
What do we look at? Well, we ask for accounting and tax records. Is there an equation we use? Yes, for example, if we are looking at Goodwill, an intangible item, it’s basic math. Goodwill is equal to the Purchase price minus the fair market value of the net assets. As an asset sale, you might want an equipment list because it could be sold separately. Maybe it’s an intangible item, like a license, trade name, or even work in progress.
So, whether you own an LCC, Corporation, or even a franchise, we will be able to provide an accurate calculation based on what information is provided. We know that we are not accountants, or attorneys, but in the due diligence process, we will ask for the information we need to come up with the best value.
If you aren’t ready to sell your business, but are considering it, we find that many business owners call us when it’s too late because the business is failing. In order to increase the worth of the business, a seller has to plan ahead. Basically, even if you are planning to sell within the next year, now is a good time to contact us and prepare.
If you are wondering what type of businesses we valuate, they are franchises and non-franchises, restaurants, manufacturing companies, many businesses in the service industry, salons, tire shops, super markets, and retail.
We offer two types of valuations; Broker Opinions and Independent Certified Opinions.
We are sure that your business is well within our scope of expertise and it costs nothing to give us a call. So, we hope to hear from you soon!
John Willingham Newsletter February 2018 Sunbelt Business Brokers and Advisors ADVISORY FEE SCHEDULE By John W. Willingham, CCIM, CBI, CBB This month we are publishing our Fee Schedule for your review and consideration. We want our Clients to be awareRead more…