How Much Is My Business Worth? This is often the first question current business owners ask when thinking about selling their business. It is one of the most important aspects when it comes to the sale of any company. You want to insure you get the best price for your business and there is no better way to do this than to have a current business valuation of your company performed by Sunset Business Advisors!
In today’s marketplace business owners should know the value of their company long before selling it. Below is a short list of additional reasons and circumstances for when you need to know the market value of your business:
Gone are the days of when "My business is worth a percentage of gross income". Potential buyers now have the resources and access to a wealth of information that allows them to expand their due diligence. Buyers are now asking more detailed questions about the financial condition of the business and are requiring more concise, conclusive and professional documentation. In addition, most lending institutions want to know and sometimes even require a current market value appraisal before lending to potential buyers and/or even current business owners.
Sunset Business Advisors has developed a formal and detailed business valuation presentation that takes into account the many different quantitative methodologies for valuing a business. These include sales comparisons, the multiple of seller’s discretionary earnings (SDE) method, the EBITDA approach, etc… There are also many qualitative factors that come into play when valuing an business such as market trends, direction of the company, seller's transition plans, reason for selling, and competition.
Don’t just let anyone tell you what your business is worth without explaining how they calculated the value. For a detailed and formal business valuation contact Sunset Business Advisors today!
In today’s marketplace business owners should know the value of their company long before selling it. Below is a short list of additional reasons and circumstances for when you need to know the market value of your business:
- Conducting due diligence
- Calculating business owner net worth for financial planning purposes
- Litigation support
- Management or leveraged buyouts
- Mediation or arbitration disputes
- Obtaining or even maintaining financing
- Due diligence
- Planning an exit strategy
Gone are the days of when "My business is worth a percentage of gross income". Potential buyers now have the resources and access to a wealth of information that allows them to expand their due diligence. Buyers are now asking more detailed questions about the financial condition of the business and are requiring more concise, conclusive and professional documentation. In addition, most lending institutions want to know and sometimes even require a current market value appraisal before lending to potential buyers and/or even current business owners.
Sunset Business Advisors has developed a formal and detailed business valuation presentation that takes into account the many different quantitative methodologies for valuing a business. These include sales comparisons, the multiple of seller’s discretionary earnings (SDE) method, the EBITDA approach, etc… There are also many qualitative factors that come into play when valuing an business such as market trends, direction of the company, seller's transition plans, reason for selling, and competition.
Don’t just let anyone tell you what your business is worth without explaining how they calculated the value. For a detailed and formal business valuation contact Sunset Business Advisors today!