What is Your Richmond Business Worth?
Do you know what your business is worth? One of the most important steps in selling a business is pricing it correctly. There are several ways to determine what another party would be willing to pay for your business; a formal business valuation is one option. Alternatively, many businesses can be properly priced with a Broker Opinion of Value.
Ultimately, the right approach will depend on the size and complexity of the business, the type of business, and the intended buyers of the business (i.e. individual investor vs. synergistic buyer).
The Importance of Valuing Your Business
The impact of improperly pricing a business can manifest in a number of ways and at different points in the transaction. For example:
- A business owner attempting to sell without the services of a high-quality broker may have unrealistic expectations about the value of their business. As a result, they often set the asking price too high and soon become frustrated with the lack of viable inquiries received.
- A buyer may uncover discrepancies in the inventory value during due diligence, bringing the transaction progress to a halt [if not completely derailing it].
- A prepared buyer and seller may both become frustrated due to their inability to find a third-party lender to help fund the transaction.
Determine what your business is worth by requesting a formal business valuation or a Broker Opinion of Value below.