How to Value a Business in Oklahoma City

When you’ve decided it’s time to sell your Oklahoma City business, it’s important to understand the true value of your company. While it’s easy to let emotions get involved when determining an asking price, it’s best to look at your business from an objective point of view. To get started, consider the following tips to help you value a business in Oklahoma City.

Tips to Value a Business in Oklahoma City

While obtaining an appraisal from a professional is always recommended, you can begin to get an understanding of your business’s worth after considering the following factors.

Included Assets

First, you should determine what exactly you’ll include in the sale. Lots of money and other resources go into running a business, and these assets can quickly add up. Consider the tangible assets you’ll include and how much they’re worth in total. In addition to your business’s equipment and furnishings, take into consideration the structure of the building and its condition. If you currently lease your business’s space, this will affect the value, too.

After deciding what physical assets are included, consider intangible factors such as your business’s location and reputation. If your business is located in a high-traffic area of Oklahoma City, it may be worth more than others. Likewise, if your business has an excellent reputation with the public, this could positively impact your valuation as well.

Cash Flow and Risk

After assessing both tangible and intangible assets, consider your business’s cash flow and risk. Most prospective business buyers will want to know the cash flow of any business they consider buying in Oklahoma City. While there are multiple ways to express this, buyers are generally more inclined to purchase when a business has a steady and plentiful cash flow.

After defining your income flow, you should evaluate the risk involved in purchasing your business. Determining the business’s risk percentage, or discount rate is best determined by a professional business broker. To get the most accurate estimate, a local broker in Oklahoma City will analyze your business and subsequently determine an accurate percentage. In addition to determining these factors, your broker can also help you define other standards of value.

Valuing a business is a complex task, and determining an accurate valuation is crucial to helping any business owner cash in on their years of hard work. If you’re looking to value a business in Oklahoma City, contact the experts at Sunbelt Business Brokers of Oklahoma City! Our brokers are well-versed in providing business valuation services in the area and are ready to help you receive the best possible asking price.