Business Broker for Advisory Firms Orange County – Why is Valuation Important

When it is time to cash out your efforts for building a successful advisory firm, you need to be certain that selling now is the right time and that you are selling for the right amount. This is why you need a business valuation. A valuation that is done by a competent business broker for advisory firms Orange County will help measure actual elements of a firm and determine its competitive position in the sector served. A valuation also helps with future financial expectations. This information is crucial when setting a selling price for your business.

Why a valuation is necessary

The first thing you need to understand is a business valuation is quite technical. For your firm to be valued accurately, extensive financial knowledge will be needed. When choosing a business broker for advisory firms Orange County recommends, focus on the ones with an in-depth knowledge of your firm’s business model, corporate strategy, and the market you serve. They must also be familiar with the factors that create value in a firm like yours. The broker must be able to look beyond the traditional numerical due diligence to calculate your firm’s actual value. The set value has to be justifiable.

It is good to note that a company valuation isn’t auditory. The analyst will not be questioning the given finances or performing a thorough diagnostic of your company. Instead, the focus will be on the valuation areas that give your company value.

Valuation gives elements to raise during negotiations

After a business valuation, you will understand the strengths and weaknesses of your business. This is very important before you get your business listed. During negotiations, you can raise your firm’s strengths to gain the upper hand. Keep in mind that buyers will also do their own valuation. Therefore, they will be able to find the weaknesses you wish didn’t exist. Buyers will use these weaknesses to get the upper hand. However, if you already know these weaknesses, you can come up with a good strategy to counter the points of a buyer. If you have more time, you can resolve most of the weaknesses before getting your firm listed.

An important point to keep in mind is that buyers will always use valuation methods that demonstrate your firm’s value is less. On the other hand, you will use a method that shows your firm is worth more. Working with an experienced business broker for advisory firms in Orange County will guarantee that you end up with the upper hand. Choose a broker with experience performing valuation and selling businesses that are the same size as yours.

Business Broker for Advisory Firms Orange County

What Client’s Say

We Couldn’t Be Happier

"When we thought about selling we had no idea what our business was worth or how to go about selling. What you were able to do was to cut through the fog so that we understood the valuation issue and had a comfort level with the process. As you know we ended up selling for somewhat more than the original valuation and we got all cash and our CPA loved the way our tax liability was minimized. We couldn’t be happier!"

Over $250,000 More

"Our first contact with you shocked us when you suggested that we wait 18 months before selling because you believed that if we hit our projections that the value would be significantly greater. As it turned out we not only followed your advice but also got slightly over $250,000 more than we originally had hoped for. It is seldom that we have had the opportunity to deal with a firm that doesn’t want both money and a commitment NOW. It was clear and obvious that you had our best interests at heart."

You Got the Valuation We Agreed On

"You did a great job on the sale of our business in really beating the bushes for buyers, including a UK company that was an active suitor. You managed to get the valuation that we had all agreed upon and got it substantially all in cash and got the transaction closed with little to no problems or expensive lawyers involved."

Thank You for Handling Our Business

"Our business was smaller than what your firm normally handles but it was a BIG part of our net worth and savings. Thank you for handling our business and we were very pleased and delighted with the results."

More Than Anticipated

"Our transaction was involved as we had different corporate entities located in different states. Our only regret is that we didn’t retain your services before 2012 when we paid $25,000 to a firm in Texas that did a valuation and market analysis for us before then failing to do anything in the way of trying to sell our business. You got it sold for more than anticipated."

Why a valuation is necessary

Valuation gives elements to raise during negotiations

The Sales Process