If you are considering selling a business, ask yourself: Do you want to optimize the attraction to prospective buyers? Do you want to position your business for a fast and fair sale?
If the answer to either of these questions is yes, then you need a company appraisal to help establish value and properly guide a successful sale. Here are more reasons why you should engage a certified business appraiser before selling a business you have worked so hard to grow.
- An appraisal gives you an objective formulation for business value - Preparing to sell your business is a highly emotional time. For many business owners, the sentimentality risks clouding their judgment and causing them to act against their best interests. When selling a company, getting a business valuation from a certified appraiser means you receive an objective estimation of value that you can use to review potential offers. When you have an independent valuation of the company, you will not miss out on a reasonable offer from stubbornness or sentimentality.
- Shorten the time-to-sale - Too often, business owners get into a lengthy sales process because they fail to understand the true value of their business and misrepresent a reasonable asking price. During the valuation, the appraiser can estimate the present value of the business and support this analysis to the owner. With the proper knowledge, the seller is more likely to price the business competitively and obtain market driven offers. This results in a shorter time-to-sale than when an owner prices the business without backup and ignores offers that truly are in good faith.
- Position yourself early for a successful sale - If you want a successful deal, you will seek a business valuation well in advance of the sale. Getting the appraisal ahead of time helps you by providing an actionable list of ways to make your business more profitable when you go to sell it. After seeking an appraisal, you can tackle items on the list to make your business more desirable to potential buyers when you go to market.
- Lends you credibility - When you want to sell your business, a potential buyer will want to know that the financial data they review makes sense. Whether you are claiming to have a customer base of 100,000 or generating $5 million in revenue per year, a third party is going to want to investigate these claims before purchasing. The appraisal will facilitate this verification process, enabling the bidder to review the valuation report as part of their due diligence.
- Prevents you from undervaluing your business - While many business owners tend to overvalue their business, it is just as possible to undervalue it. Setting too low an asking price when selling may undermine the potential profits you could make.
In summary, accuracy is the key to selling your business efficiently and for a fair value. Turn to Business Valuation Specialists for help finding a certified appraiser who has experience performing appraisals for companies just like yours. The appraisal will greatly assist in helping you determine an asking price so you can advertise your business opportunity with confidence