If you’re a business owner and thinking about selling, it may feel like a daunting challenge. The reality is, that going through this process on your own can be overwhelming. However, having experts who can guide you through each and every step of the process can transform this effort and put you in the driver’s seat. Experienced and effective business brokers will quarterback the entire effort to help you get the outcome you desire – finding the right seller, who will pay the right price, in the right timeframe.
While there are multiple important steps in the selling process, one of the first and most critical is to determine what your business is worth. This will help you decide right up front if now is the time to sell your business…or not.
At BayState Business Brokers, we offer two approaches to determine the value of your business.
Opinion of Value
The first option is to have our experienced brokers leverage their expertise in your market segment to provide our Opinion of Value of your business. This approach, which is the quicker methodology and typically completed in two weeks, is effective when there’s ample information on the sale of comparable businesses. It is similar to when a real estate agent creates an appraisal for the value of your home. They look at other comparable homes to find out their listing and selling prices. Similarly, BayState Business Brokers would do an analysis of comparable business sales, as well as review your financial data. We leverage that information to prepare an estimate of what your business is likely to sell for in the current market climate.
This case study illustrates how we leveraged our breadth of knowledge in a particular industry to demonstrate to the lending bank’s appraiser that the value of the business was higher than its appraisal value.
Independent Business Valuation
The second more in-depth method is to hire an external expert to conduct an Independent Business Valuation. This approach is used when there is not enough comparable business sales data available, and for businesses with $2 million or more in revenue. This detailed process involves preparing a comprehensive valuation report with supporting data and insight that is used to establish a price for your business. It typically takes four weeks to complete. At BayState Business Brokers, we facilitate this process and help you gather the necessary documents the business valuation expert will require. We then recommend one of our trusted experts in this field who will deliver sound, detailed and defensible valuations.
Let us Help You Take this First Step!
So, if you think now might be the perfect time to sell your business, let us help you with this first critical effort. Learn more here about BayState Business Broker’s processes for determining the value of your business, which helps our clients make informed, timely decisions. For more about our proven, strategic process to sell your business to qualified buyers, go here.