Developing Realistic Asking Price for Your Business
Every business owner, regardless of size of the company, must execute a plan for divesting his/her interest in the business – often called an exit strategy. The business owners can give it to his family through a will, sell to his/her employees or to an outside party, or take the company public. For most business owners, based upon the size of their company and lifestyle considerations, selling their company is the best option.
There are many factors that have a bearing on the development of a realistic asking price for your business. The purpose of the following timeless 14-page article, which I read a few years ago, is to identify these factors and explain how they should be taken into consideration as part of your asking price.
10 Things You Must Know Before Offering Your Business For Sale
by Toby Tatum
Buying or selling a business is probably one of the more complex business transactions. The task of establishing a realistic asking price, or for a buyer, an offering price, lies at the heart of the process and is certainly the most complex component of the overall selling or buying project.
As a business owner, you should be aware of the fact that there is general agreement among business brokers that most small and mid-sized businesses on the market will not sell. The principal reasons they don’t sell is because they are either over-priced and/or not properly positioned to sell.
My mission is to assist business owners in selling their businesses. To accomplish this goal it is imperative that prospective business owner/clients have a solid understanding of the many factors that influence the development of a reasonable asking price and obtain a professional opinion of their businesses’ value. The purpose of this whitepaper is to provide you with this information in order to guide you in establishing an asking price at which you can reasonably expect that someone will buy your business…
To read the entire article, click: 10 Things You Must Know Before Offering Your Business for Sale.
The Summit Acquisitions Group — Business Brokers and M&A Advisors — specializes in the sale, appraisal, and financing of privately owned companies ranging in valuation from $750,000 to $25,000,000. Contact their offices in Atlanta, GA or Charlotte, NC for a free consultation.