19Jan 2015

How valuation services can help you sell your business

Valuation services may seem to be something you can do without when you get ready to sell your business. After all you have your balance sheets, bank accounts and tax returns, those will show what your business is worth right? Well, that is not completely true. Those items do help but they also miss a lot of things that could raise the value of your business.

Do you have furnishings? Do you own the building the business is in? Is your business located in a great business area? What about your records, customer base and other assets? There is often of more value in a business than simply the profit and loss statement. When you want to know how much your business is truly worth a business valuation can help you quantify all parts of a company’s value.

Once you know the value of your business you can list it with a reasonable asking price that will meet your profit needs as well as offer buyers a fully informed sales packet. Do not be surprised if potential buyers are interested in an independent valuation service as well as the valuation report you provide.

This is a common business practice and helps make sure that the potential buyer has all pertinent information. By providing a valuation report compiled by a professional you are showing potential buyers that you did not just randomly select a price and that you have invested in making sure that the value of your business is accurately reflected in the price.

When a potential buyer is presented with a sales packet rather than just a price they can see all aspects of the business, profit, loss, value, assets etc. This helps them make an informed decision and offer a bid to purchase the business. Without this information, they must do the research on their own. Help your business sell by providing potential buyers with the valuation answers to the questions they have early on to prevent confusion during the business transaction.





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