What Information is needed in a Business Valuation?
Commercial business sales Buena Park always start with a valuation. The purpose of a business valuation is to help determine how much a business is really worth and thus helps with pricing. A detailed valuation report like the one you will get from So-Cal Business Brokers will help identify the strengths and weaknesses of your business. But what information is really required in a valuation? Below are the vital pieces of information we will require from you.
To answer the question on whether your business is thriving or failing, we will look at the history of your business. There is no doubt that your business has evolved over the years. A record of the business’s origins, goals and journey will help us understand its real value.
Do you know why commercial business sales Buena Park need to be kept a secret? One of the main reasons is to prevent turnover. The more employees you lose prior to a sale the more the value of your business will plummet. Away from that, employee information will impact the value of your business.
A thorough record of your team will help potential buyers understand their job descriptions as well as the pay rates, special skills and staff morale. We will also need information on the employees’ leave entitlement and how it should be handled in the sale. To help get the best business valuation report, we will focus more on the key employees. We will also help you create a stronger management team. Buyers want to be sure that in case one person leaves the business will not be left in limbo.
Commercial and legal information
We will need information relating to your lease agreements, licenses, commercial contracts, permits, and registrations. This information will impact the value of your business. We will help you provide proof that your company complies with all relevant health and environmental laws. We will also help settle pending legal proceedings.
This is one thing that has the biggest impact on the real value of your business. We will require information on your annual turnovers, profit margins, assessment of the tangible assets, and asset market values. This information allows our team to learn more about the liabilities of your company and where it is thriving.
It is after gathering this information that we will determine the best valuation models to use. Call us today for a business valuation. We always provide detailed valuation reports that not only help you better understand your business but also wins the confidence of potential buyers.