The Right Sales Price
Have you ever sold or bought a home? How did you settle on the price? You probably started with a home appraisal and neighborhood analysis report.
The transfer of a business is similar to a home, but much more complicated. Placing a fair market "value" on the business requires an assessment of company assets, location, economic, market, goodwill, and other factors.
True market value is obtained by using a fully qualified and experienced business valuation specialist to prepare a Market Valuation analysis . Without it, the buyer and seller will likely end up in long, tedious negotiations that can delay the closing of a sale and may leave a significant amount of value on the table. It is called book vs. market values: many business owners use tax returns or financial statements prepared for tax returns as a basis of determining value. Tax returns reflect an understatement of "True Value" because they report depreciated assets and IRS deductions.
In addition, the business goodwill or name, which represents the market value of the company, is not a consideration for tax purposes and is often not reflected. What you have is a "book value" that is lower than the true "market value" of the business.
Book Value vs. Market Value
Let us determine your best solution today! We get your business approved for SBA Funding for an Immediate sale, Loan for growth or future exit strategy.
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