The Point: This “new” economy continues to ripple through the economy even after the “great” depression of a few years ago. What used to be a somewhat simple-straightforward process of selling a business is now complicated. These complications can be calmed when engaging a business valuation service. A business valuation service is responsible for conducting analysis and presenting to leadership real terms regarding the value of a business. In this post, we’ll look at business valuation services and whether or not they can assist sellers in receiving more money for their businesses… Enjoy!
It’s a Business Buyers Market
The recent downturn in the economy has left several business owners and leadership looking to exit. While this could be a painful time, one that most thought they’d be able to overcome, it doesn’t need to be an outright disaster. There are still businesses that are looking to purchase other businesses. However, what if the price at which a business is listed for sale is too low (or on the other hand listed too high)?
Hiring a business evaluation services firm can work to get the most money possible out of your entity. This money should not only represent the organization’s current value, but a value that also equitably represents the amount commensurate with the number of years it took you/your organizational family to build the business.
Business Valuation Services “True” Services
There are several reasons why leadership should look for help in determining this all too important listing/selling price point. For starters, and the answer most typically received when asked what a business valuation service does is to identify the actual value of the company. The number can be difficult to come up with, let alone the emotional value that typically gets applied by business owners. Separating emotional value from actual is a service that an independent business valuation service can produce.
Business valuation services also can act akin to a business broker in helping connect buyers and sellers. While not at the algorithmic efficiency as a dot com dating service (perceived or real), having more prospective buyers review the company can/often does present bidding wars where more than one prospective buyer looks to purchase. These connections can also help foster relationships with those that typically are not looking, as opposed to those only interested in looking for a good deal.
SUMMARY
If you’ve decided to sell your business, a business valuation service is a logical step towards the exit. Providing yourself with accurate data, removing the emotional price points you’d like to receive, and opening the sale to a wider audience can lead to sellers receiving more money for their business.
Sam Palazzolo
