by Peter C. King, VR Business Sales/Mergers & Acquisitions, CEO
The sale of your business is of extreme importance. Regardless of the reason you may be selling, consulting with a professional business broker presents a better opportunity. The sale of a business consists of a presentation, finding the most suitable buyers and ensuring you receive payment for what the company is actually worth, as opposed to having the chance of losing out on a fair price. A business broker is a huge help in instances like these, as they have the knowledge and professionalism to ensure the transaction is painless and fruitful.
Perhaps one of the most exhausting decisions to make is whether or not to sell your company. You must weigh the decision carefully, as well as determine if it’s worth selling. There are advantages to making the sale, however you must compare it to the time, capital and energy put into the enterprise’s growth. There is also the investment that would accompany continuing the company. However, it may be the right time for you, in terms of personal or professional needs.
You will need to have your financial statements recast, along with a business valuation. A business valuation allows you to determine the true value of your business, and allow you to receive a price worthy of your time and effort. Having one of these available will definitively increase your potential profits on a sale. A business valuation report usually involves the following elements:
- Assumptions and limiting factors; these factors may include if the enterprise needs to be sold posthaste, depreciation of the business and the amount of time one would need to convert the assets into cash.
- Standard of value; the standard is used to determine the valuation, and may involve any type of method necessary, such as the liquidation value or fair market value.
- Economic outlook; this presents a background for the valuation. The value may change based on market forces at the time. It may include information pertaining to the GDP, exchange rates and pricing, the business financing condition and interest rates.
- The reason the valuation is occurring.
Once you have a valuation, you will need to present it professionally to buyers on various websites. While this can get tricky, it is highly crucial to finding a good buyer. There are a variety of VR corporate and local office websites, and business for sale sites. However, don’t stick solely to local or national sites and areas. By expanding your geographical search, you can find buyers willing to pay what your company is worth.
The truth is it can be difficult, especially if you don’t know how to sell a business. That’s why many people hire a professional company such as VR to assist them in selling their business. They offer extensive assistance and have a history of successful sales. With their reach around the world, they can confidently match buyers with sellers, and have done so since 1979.