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Business Sale or Acquisition: Whether you
are selling or buying a small business, determining a fair market
value of the target business is generally considered one of the
essential ingredients in the business transfer process.
For Sellers:
Determining a supportable asking price is crucial when
listing a business for sale in the marketplace. It never makes sense
to put a business on the market that is severely overpriced.
Industry statistics indicate that the #1 reason why some small
businesses don't sell is because they are overpriced. A business valuation
performed by a qualified valuation professional or Business Broker can be instrumental
in determining a realistic asking price that will eventually result
in a sale.
For Buyers: having access to a professional business valuation can
help support their offer to purchase, and may also be valuable in
obtaining bank financing for the acquisition. Many small business
lenders and banks will require a business valuation be performed on
the target business before approving acquisition financing is
approved.
Legal Purposes: Often certain legal issues such as divorce,
estate issues, and business partner disputes may require that a
business valuation be performed to cure the issue
Obtain Financing: A business valuation performed by a
valuation professional can also be instrumental in helping a buyer
secure business acquisition financing. A business valuation can also
be very helpful to small
business owners when trying to raise capital or secure credit for expansion.
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