Five Reasons to Get a Business Valuation Before You Sell Your Business | The Sequitur

If you are wondering how to go about selling your business you need to consider how to position the business as well as attract potential buyers. You need a company valuation in order to move forward so that you can have a successful sale for the business you’ve worked so hard to grow. Read on to learn the five most common reasons why you need to have a business valuation first.

Objective Formulations

It is a very emotional time when you decide to sell your business even if you’ve been preparing for this for a while now. The sentimentality of your own connection to the business can cloud your judgement and mean that you act the opposite of what is your best interest. You might also not be familiar with the actual value of the company which is why you need to bring in an objective third party to conduct this task for you.

Decrease the Time to Sale

A business sale process can easily become far too lengthy because a business owner does not understand the actual value of the business and price the company accordingly. An actual business appraiser can conduct a forensic valuation to determine the present value of the business so that the owner is onboard with what it should be sold for.

Positioning Yourself for a Successful Sale

Having a business valuation well in advance of the actual sale of the business means that you have an actual list of ways that you can increase the profitability of the company before you choose to sell it. This gives you options as well as room to grow so that you can take action to enhance the value of the company should you wish to do so.

Credibility

Any potential buyer will want to know that all of the numbers add up in terms of the company before buying it. Regardless of whether you are claiming high levels of profit or a large customer base, a potential buyer will want to evaluate and determine the validity of these claims before actually purchasing the company. Your forensic valuator will draw up evaluation report that goes into detail on how he or she arrived at the final number in the business valuation.

Decreases the Chance of Undervaluing

While it is certainly true that many business owners actually overvalue their business, others go the opposite way and actually do not have an accurate picture of the true value of their company because they set the price too low. This can decrease the amount of possible profits you can make. Having an accurate business value conducted by a business appraiser is essential for success and this is a process you should do well in advance of selling the company. 

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For additional information regarding Florida business sales, acquisitions and valuations, please contact Eric J. Gall at Eric@EdisonAvenue.com or 239.738.6227. Also, visit our Edison Avenue website at www.EdisonAvenue.com or my personal website at www.BuySellFLbiz.com.