Our Top Considerations in Business Valuation
Hiring a business broker Chula Vista is without doubt the best decision you can make when getting ready to sell your business. You will not only leverage on his experience but also steer clear of the burden that comes with the sale. At So-Cal Business Brokers, we have worked with all manner of business owners. From small businesses that are being acquired by larger companies to companies considering mergers.
Setting the right price for a business has always been the key to selling fast. Here are the main considerations we make when determining the worth of a business.
The financial performance of your business is the first thing we consider in a business valuation. To know the actual value of your business, our business broker Chula Vista will first strive to understand the financial performance of your business; both past and present. This is an area we have found easy to assess using the standard valuation techniques. The rule of thumb, however, is to examine all the financial information. We achieve this with a stringent due diligence process.
When valuing a business, our team does not just look at the financial performance. We also pay close attention to the economic conditions. The question we ask is this; how strong is the underlying economy? Economic conditions have a significant impact on the confidence of potential business buyers and will also impact the financial performance of any business at the time of sale. When compiling a valuation report, we identify the vulnerability of your business to the prevailing economic uncertainties in general. This allows us to know how much your business can sell for in the current market.
Government regulations will always have a part to play in the value of your business. That is why our valuation will account for the regulations. We will check if your business is at a risk of any new regulations or legislations. Our business broker Chula Vista will check if there are any changes to the existing rules in the environment of your business.
Your management team will affect the value of your business. We will check who runs your company and how reliant is the business to key personnel. This is an area we focus on the most with the micro-businesses. The big question we ask is if the business will still run profitably once the current owner leaves. This is an area that most valuation experts overlook.
Making sure you get the most accurate valuation report is what we are committed to doing here at So-Cal Business Brokers. Give us a call today to learn more about our business valuation strategy in San Diego.