Manufacturing Business Broker - Factors that Affect the Value of a Business

Even after bringing in an experienced manufacturing business broker, it is always important to understand the factors that affect the overall value of your business. Doing so will ensure you don’t have high expectations and that you are able to focus on what really makes it easier to sell your business. One of the biggest roles we play at So-Cal Business Brokers is managing the expectations of our clients. We are always upfront with you. Doing this guarantees that you have reasonable expectations. But which factors affect the overall value of a business the most?

Finance

Your business’s financial performance has the biggest impact on its worth. This is more so when you consider the fact that buyers will focus more on your financial records when determining if your business is a worthy investment or not. When you hire us, our manufacturing business brokers will help gather all relevant financial records and organize them in a way that wins the confidence of a potential buyer. We will also help you identify better ways of controlling costs, where possible, as well as come up with a solid growth plan.

External factors

You cannot control everything. The external factors, for example, are out of your control. The best you can do is to be proactive. Common external factors that will affect the value of your business include:

  • State of the economy, level of demand in the market and interest rates
  • How businesses similar to yours are being valued
  • Number of serious purchasers that want to buy your business
  • Number of businesses similar to yours that are on the market

At So-Cal Business Brokers we know how buyers think. Our team will be able to package your business in a way that attracts more bids and speeds up the sale. Talk to us now to find out more.

Assets

In a business valuation, the value of your assets plays the biggest role in determining how valuable your business is. The value of your property, equipment, debtors, stock-in-hand and other assets will be considered in a valuation. Intangible assets have to be accounted for too. They include goodwill, strength of customer relationships, your business’ growth potential and the economies of scale. 

There are many more factors that affect the value of a business. The job of our manufacturing business brokers is to help you sell for maximum profit. We do this by performing thorough market research and packaging your business perfectly. Helping you reach out to more buyers also increases chances of selling for maximum profit. Contact us now to take advantage of our free consultation. We are always happy to share with you how we can help sell your business for the best price.

Manufacturing Business Broker

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