Selling a small business requires careful preparation. One of the first steps in preparing to sell a business is conducting a business valuation, or company valuation. Simply put, that means figuring out what your business is worth to a buyer. Determining a business valuation is a little more complicated than figuring out what the listing price should be on your home. Working with the business valuation team at Transworld of North Boston takes the mystery out of things.
Our business valuation experts typically consider multiple factors before performing a detailed analysis that culminates in your business valuation. These factors include, but are not limited to:
We evaluate each factor with the goal of identifying the positives and negatives that help define your company’s value. We also identify any areas that need to be fixed or improved before listing your business for sale. This can include cleaning up sloppy bookkeeping, resolving tax issues, and reducing inventory.
If you’re planning on selling your business, it’s important to start with an accurate business valuation. This helps you price your company so that you can get top dollar. Call us at (855) 652-8922 and ask for our business valuation department to get started. We work with clients throughout the Boston area, with a focus on Suffolk County, Middlesex county, Essex County, Norfolk County, Plymouth County, Worcester County, and Providence, Rhode Island.
For more in-depth information on how the business valuation process works, check out the article below. Andrew Cagnetta is our company President and business valuation expert.
For our purposes, let's talk about fair market value. Essentially what a buyer would pay for your company in an open market.
Now, remember, this is a simplification of some very intricate valuation practices. There are valuation experts that specialize in providing very complicated reports as part of their business valuation services. Those reports are often used for IRS inquiries, legal proceedings, intricate financing and other reasons. A full valuation of a company could cost $10,000-$30,000. For small business sales, a valuation is usually not needed, and for the most part our simplified valuation methods are sufficient enough to determine your listing and approximate your eventual sale price.
There are three generally accepted approaches to valuing a company: