One of the most common question we get asked is 'what is my business worth?'.
Whilst it's a simple question, arriving at an accurate answer is complex.
There are many websites and brokers who will offer free appraisals on your business. It's important as a business seller you understand the difference between a valuation and an appraisal (see article:differences between appraisals and valuations).
When providing an appraisal or valuation for a seller there tends to be bias. The person providing the appraisal has a goal in mind, they want to inform you of a price they believe it is worth, then have you sign up with them for services. They are influenced in some way to obtain your business. There is an ulterior motive in the appraisal that they are providing. Bsale is a marketing service so it is important we remain independent of your sale so that we are driven purely to generate leads for you.
If you are selling your business you want to be sure that the information you are being told is as true and accurate as possible. Appraisals are a bit of an 'educated guess' on what people believe your business is worth. It is a short and sweet method to coming to a price or value you should place on your business. The problem with offering appraisals is they don't delve into the full details of your business so they can often be misleading.
A valuation by an accredited valuer is the best option to obtaining a true valuation for your business. You can find many chartered accountants and valuers offering these services on Google, please see 'Business Valuers'. These valuers should remain independent and they will charge in the thousands to conduct an in-depth analysis of your business.
When you're selling a business, your hope is to get the best possible price. Understanding the true value of your business is important. If you're after an appraisal the best advice is to collect multiple from local business brokers and your accountant. The more you collect the more comparables you have. It is also a good idea to get a valuation from an accredited valuer who has no bias in the decision they come to - this document will also be valuable to a buyer who is performing due diligence or applying for a loan.