has typically been compensated by the seller often with a commission only fee. However, in recent years, most business brokers have moved to partial upfront fees and commission at the closing of the transaction. This is done to help the broker defray initial expenses and also identify a serious client. All in all, you must never commit to a broker that asks for both upfront fee and commission upfront. How about the business valuation fees? Do you have to pay them? The answer is no.
What is a Business Valuation?
Business valuation is the process or act of determining the actual value of a business. Valuation is a major concern to both the sellers and buyers of a business. The business broker in San Diego is a professional in determining the most probable selling price of a business.
Generally, the business will be valued based on the market, income and asset approaches. Additionally, by knowing who the business will be sold to, the value of the business may be affected drastically. A business valuation will cost between $2,000 and $30,000. However, you don’t have to pay for business valuation. A business broker San Diego can save you the trouble.
Why is Business Valuation Important?
You can get business valuation even if you have no plan of selling it any time soon. A business valuation basically helps you know where your business stands. You can use the valuation to work on your weaknesses so as to fetch a better price when you are ready to sell. There are many reasons as well as circumstances why you may be required to get a business valuation.
They include the following:
- Business succession planning.
- Requirement by conditions such as shareholder oppression, multiple owner disaccord, or divorce.
- Requirement by regulatory bodies such as property taxes and financial accounting.
- To determine standard of value to be applied.
More often than not, business owners ask for valuation to determine the best selling price. This is best done by a business broker San Diego. You may also hire an independent appraiser.
The more expenses you avoid when selling a business, the more money you will pocket at the end of the day. Did you know it is possible to get a free valuation? You can get this from a business broker in San Diego.
Let’s face it, who is better equipped to value your business than that person that is actively involved in the sale and purchase of businesses, every day? It makes no sense in paying for business valuation whereas there are many people involved in offering accurate valuation services for free. Considering your business is only as valuable as how much the market is ready to offer at the time of sale, you cannot rely on a series of textbook formulas to ascertain the value of your business. These formulas only work in a perfect but we don’t live in a perfect world, do we? Get a fair market valuation from an expert you will only need to retain to sell your business. Talk to a business broker San Diego.