The Importance of Valuating Your Business!

 Lenders, Banks and sophisticated buyers require a qualified business valuation. A thorough, professionally prepared business valuation will assist the owner in:

• Expediting the business selling time frame and solidifying the price of the business.

• Helping identify the key value drivers, major strengths and, more importantly, the major weaknesses of a company allowing the owner to solve both obvious and hidden problems prior to the selling process.

• Determining a reasonable selling price. Many owners rely on general rules of thumb, casual advice from friends, or similar unreliable sources. Unless the business owner goes through the valuation process, he/she will not know. If the owner’s expectation of value is too high, it will prolong the selling process until a price concession is made. If the price is too low, money is left on the table.

• Fully understanding the value of the business will strengthen the owner’s negotiating position. In this market, one can expect buyers to be sophisticated and experienced. A business owner must be prepared. Sophisticated and experienced buyers will conduct a rigorous analysis of the Company even if the Seller has not; don’t let them get the leg up on information about your own company.