It is important to obtain a realistic valuation for your business. The documents you collected on our Document Checklist are vital for this process. A valuation will ensure you are marketing your business at the right price and give you confidence when negotiating with potential buyers.
Valuing a business can be a difficult process and its important you obtain professional advice. There are calculation methods available but every business is different, so we stress the importance of seeking professional advice.
The three most common ways to obtain a valuation:
These professionals will review the information about your business and come up with a figure they believe your business is worth. This is a valuation based on the financial figures of your business, but they may also consider other factors such as goodwill, market conditions, potential, trademarks etc.
If you receive a professional valuation this can also assist the buyer in obtaining a loan from the bank.