Sell Distribution Business – How to Come Up with a Sales Price for a Distribution Business

Before you sell distribution business it is imperative that you know how much it is really worth. There are several methods you can use to determine the value and set an accurate selling price. At So-Cal Business Brokers we rely on several methods to determine the most accurate selling price. Give us a call now to learn more about our approach in business valuation.

An important point to remember when pricing your business is this; if you price it too high you will scare off potential buyers and if you price it too low you will leave money on the table. Our job at So-Cal Business Brokers as we help you sell distribution business is to ensure we never leave any money on the table. The more money we help you get from the sale the more money we earn in success fees. We are one of the few business brokerage firms in the country that only ask for a success fee which is paid when the sale closes. We thus have your best interests at heart.

Valuation Methods

The first thing we do when determining the selling price of your business is performing a business valuation. A business valuation is what will help us know exactly how much your business is worth. Our approaches in business valuation include the following:

  • Income valuation approach: Here we analyze the revenue of your business.
  • Asset-based approach: Focus is on the total value of your business assets.
  • Industry formulas and rules of thumb: We rely on formulas that are used in your industry such as three times your earnings averaged over a period of three years.
  • Comparable: Here we consider how much businesses similar to yours sold for.

Combining all four valuation methods helps come up with the most accurate business valuation report for your distribution business. This information is vital in setting an accurate selling price. The best thing about working with So-Cal Business Brokers is that you don’t pay us anything for business valuation, market review or packaging.

Naming a Price

Even with the true value of your business in mind, you cannot simply name a selling price. If you wish to sell distribution business fast, there are a couple of factors you have to account for before naming your price. These include:

  • Type of buyer
  • Terms of payment
  • Market demand
  • Personal needs

We want to help you sell distribution business for the best price and fast. Contact us today and take advantage of our free, no-obligation consultation with our experienced business brokers. We are always happy to hear from you.

Sell Distribution Business