Value And Market Your Business | usmoneyshop.com

Value And Market Your Business | usmoneyshop.com

July 17,2010

If you are a business owner and you are intending to sell your business then there are a couple of crucial elements that will require your full attention. Finding potential buyers and negotiating the correct value and sale price of your business.

You will of course probably have a valuation of your business already in mind, and this is an essential step in making your own decision on value and estimated sale potential at this early stage so that you are absolutely clear about the potential value you can expect to gain from the sale. At this stage, another important consideration is how you plan to deal with the sale when the time comes.

When establishing the value of your business you have several factors to think about throughout the procedure. The overwhelming issue here is how you intend to sort out the finances of the business. You will need to keep in mind the current and projected profits of the business, cash flow and all historical financial data. Capital expenditure is also a consideration you will need to keep in mind for the future.

There are also a bunch of external factors to consider, and one of them is quite prominent globally at the moment, the state of the economy. The state of the economy has an effect on interest rate levels, the level of market demand for your business, its services and/or products. It also gives a good indication of the value of your business; you can check how other similar businesses are being valued. The state of the economy also affects how many potentially suitable purchases are in the market looking for an acquisition and how many other similar business is on the market that could affect the sale value realised.

Then there are the intangibles to consider. Intangibles are areas of your business such as intellectual property, existing customer relationships, equipment and assets, debtors and inventory and the potential for future growth.

If you require help with Business Valuations then look no further than Rickitt Mitchell. Rickitt Mitchell provide financial assistance on Company Acquisitions .
Post Published: 16 July 2010
Author: Paul Myers
Found in section: Finance

Tags: acquisitions, business, business acquisitions, Finance, sales, selling