What is the Importance of Determining the Market Value of Your Business?
When it is time to sell my business Aliso Viejo, the first thing you will need to do is determine the true value of your business. It is not possible to set a sound selling price if you don’t know how much your business is worth. You also cannot draw the figures from the air and expect potential buyers to believe that that is the actual value of your business. You will need a business valuation and that is an area So-Cal Business Brokers excels in.
Determining the actual value of a business is the first step that needs to be taken by a business owner. It is the start of the exit planning process if you want to sell my business Aliso Viejo. So-Cal Business Brokers can help you determine how much your business can sell for if sold in the current market. We do this by utilizing various business valuation techniques, statistical data and industry experience. Our team analyses different variables of the business before coming up with a valuation report.
Our approach in business valuation takes into account a number of things. We don’t just look at the asset value of the business at the time of valuation. The main areas that are considered in a valuation include the following:
- Financial performance. How well has the business been doing in the past five or so years? Buyers want to invest in a successful business and one with the potential to grow.
- Market position. What is the reputation of the business? A bad reputation means that the success of the business is slowing. The market position of a business is what enables buyers to determine if it is a good investment or not. It is also what determines the goodwill.
- Customer base. Does the company have loyal customers? If yes, then it is valuable because there is a guarantee of repeat business. If the customer base is small, buyers will be scared and might give the lowest possible offer.
- Equipment value. This relates to the value of the business’ assets. The total value of the equipment will be established and accounted for in a business valuation.
- Organizational structure. Can the business continue without your intervention? If there is no management team to run the business in your absence, the value of your business will be impacted negatively.
So-Cal Business Brokers can help you get your business ready for sale and also give you advice on how to get the best value. In addition to that, you will find qualified business brokers to help with business valuation. If you want to sell my business Aliso Viejo, working with So-Cal Business Brokers is the best decision you can make.
Depending on the nature of your business, the price opinion process with So-Cal Business Brokers will take a week or even less. The service is complimentary for current clients and for a fee for business owners who are interested. The fee can be credited to our final fee if you choose to work with our business brokers in your business exit.