How Does a Business Broker for Engineering Companies Orange County Perform Value Analysis?

When you are ready to sell your business, you cannot get it listed until you know how much you want to sell it for. The wrong price can cause the business not to sell or make you sell at a loss. It is the duty of a business broker for engineering companies Orange County to ensure that you sell for the right price in order to earn maximum profit. But how exactly is this done? In this post, we will be looking at the top considerations that are made to determine the value of a business.

All in all, before we get started, it is important to note that determining value is one of the hardest tasks when selling a business. This is because no matter how experienced a business broker for engineering companies Orange County is, the value of a business is always in the eyes of a buyer. You will only get what buyers are willing to offer for the business. To increase the chances of selling at the set price, the business broker has to present your engineering business in the right light.

Value of physical assets

The first thing a business broker does is determine the value of physical assets. This includes the value of furniture, equipment, vehicles, physical premises and anything else that will be included in the sale. While the value of physical assets might seem significant, it is only a small portion of the final figure. The broker will appraise the value of everything in the company.

Personnel that takes over the business

Another important consideration buyers make is on the type of team that is in your organization. In most cases, they will pay attention to who will be running the daily operations after you leave? If you don’t have a trained team in place, chances are buyers will be reluctant to acquire your business. The more competent your team is, the more valuable your business will be.

Signed contracts

Having signed contracts shows buyers not just what you have done but what they can expect as income in the future. Signed contracts with suppliers, employees and clients show the buyer that your business will not fail as soon as they acquire it. Contracts give some sort of guarantee.

Long-time repeat customers

Do you have a list of long-time repeat customers? If you do, your engineering business will have significant value. This is because these kinds of customers give ‘good will’. Goodwill is determined by the quality of your client list, the niche you have developed as well as how your business is perceived in the area you serve.

Business Broker for Engineering Companies 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."

Value of physical assets

Personnel that takes over the business

Signed contracts

Long-time repeat customers

The Sales Process