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Getting the right price for your business involves many factors, including
starting with the correct valuation from the beginning of the sales
cycle. If you start out
with an asking price that is too low, the business owner will not
receive as much as they should get for their business. If you price
the business too high, valuable time and prospects will be lost
while the “market” determines what the actual price should be.
Many times an interested buyer will make an offer that is lower or
different than the price and terms asked by the seller. They will
base their offer on their own valuation formula or a “rule of
thumb” given to them by their accountant or friend. Without an
independent third-party valuation report, a business owner should be
prepared for intense negotiations because it will be your opinion of
value versus a buyer's opinion. A buyer will place little
credibility in the broker’s opinion of value.
Valuation Report
There is a big difference in the quality of valuation reports that can be
prepared. Many brokers rely on generic valuation software reports
that are based on unproven theories. Is the report designed as a
marketing tool, or is it something that has to be put in a drawer
and not shown to a buyer? Was a true analysis of the business
performed? Were factors such as industry trends, age of the
business, client base, and other factors that will affect the price
taken into consideration?
The Bridlebrook Group uses the services of
one of the best business valuation specialists in the
U.S. to address these factors.
Our valuation report delivers credible valuation conclusions by applying
the most advanced and appropriate valuation techniques. Every
business is unique. Research is the foundation of valuing a
business, which is why our business valuation specialist utilizes
the most comprehensive databases of economic and comparable
transactions available and spends numerous hours researching
historical transactions and conducting detailed financial analysis
for every valuation assignment to assure that you receive the most
accurate valuation possible.
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