Propert Valuation of Your Business

Sellers obviously want to get the most money for their business when selling. However, I have observed that sometimes asking prices that are set too high can impair the selling process and elongate or even prevent the sale. In the first 30 – 60 days that a business is listed will receive the most buyer attention. There are limited number of qualified buyers for any business and you are competing for that buyer’s attention. If you have an overpriced offering, it will turn these buyers away. Buyers that have looked at the business once, but have dismissed it because of the price, typically move onto other opportunities. Once they have moved on, it is very difficult to have them look again. Any extended time on the market will confirm their suspicion.

Sellers who want to obtain the highest price will typically do these following steps:

1) Have the business valued by a professional who is knowledgeable about the marketplace – This will give the owner a realistic idea of what the most probable selling price could be.
2) Hire a business broker – They have the training and experience to position the business in the market but also to successfully lead the buyer through the entire process
3) DON’T OFFER THE BUSINESS TOO HIGH – And be willing to reduce the price (if necessary) in order to increase buyer activity.

Working with a business broker will ensure your company is ideally priced from day one.

Written By:

Dave Gorman
Senior Business Broker
Sunbelt Indiana Business Resource
317-218-8626
Email: dgorman@sunbeltindiana.com