There are a number of ways the worth of a business can be determined. Every business needs to be looked at in the context of its individual make up, location, operation desirability and value.
The main reason for a business to exist is to generate income for an owner and in most cases profitability is the key factor in determining the price for which it can be sold however this is not always the case.
It is important that your business broker has a clear understanding of your business, industry, geographic area, the market as well as the needs and limitations of both the seller and buyer.
Your broker will also conduct a proper review and assessment that includes your business, its profitability, performance and desirability and in context of the current market and prevailing market conditions as well as other factors including risk and the potential upside in the business.
We will then provide you with an indication of the likely selling price or selling range of your business in the current market. This assessment should also consider comparisons with other similar business that might also be on the market or recently sold.
Once a likely selling range is determined, it is important to implement the pricing, selling and marketing strategies and approach that will help you achieve the highest price and a quicker sale.