Selling a business requires careful planning. If you are thinking of selling your business, one of the first steps is to conduct a business valuation or company valuation. In a nutshell, that means figuring out what your business is worth, or what a buyer would pay for your business in today’s market. Determining an accurate business valuation is a little more complicated than figuring out what you should list your home for. That’s why you should work with the company valuation team at Transworld of San Diego North.
A thorough business valuation can provide a realistic estimate of what your business might sell for. We perform a detailed analysis of your business, your competitors, comparable sales, and more.
Our business valuation experts will take a deep dive into your company’s books and look at several other factors before coming up with a company valuation. These can include:
We examine everything with the goal of identifying possible business threats as well as opportunities that can help define your company’s value. We also identify areas that need improvement before listing your business for sale. That can include cleaning up sloppy books, resolving tax issues, and reducing inventory, just to name a few.
If you’re thinking of selling your business, it’s important to get an accurate company valuation so you can get top dollar. Call us at (760) 607-0641 and ask for our business valuation department to get started. We work with clients throughout the San Diego area, including San Diego County, Riverside County, Imperial County, and San Joaquin. For more in-depth information on how the 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: