one who has ever purchased a new home knows that an independent
appraisal report had to be produced to complete the sale.
A business is many times more complex. The key to having a
viable valuation performed on a business is to have it performed
by an independent third-party service.
a third-party report, a business owner should be prepared for
heavy negotiations because it will be your opinion of value versus
a buyer's opinion. Be wary of a business broker who prepares his
own valuation report. A buyer will place no credibility in his
opinion because he has a vested interest in obtaining a higher
price than can be justified because it will increase his commission.
A buyer will normally place no credibility in a value arrived
at by the business owner's accountant for the same reason.
is a big difference in the quality of valuation reports that can
be prepared. Many brokers rely on generic valuation software reports
that are based on unproven theories. Is the report designed as
a marketing tool, or is it something that has to be put in a drawer
and not shown to a buyer? Was a true analysis of the business
performed? Were factors such as industry trends, age of the business,
client base, and other factors that will effect the price taken
Business Brokers Offices use the services of our global
headquarters to perform this service.
Business Brokers have consistently produced higher
prices and smoother sales when a professional report is presented
as part of the business offering package than similar businesses
produced that did not have the benefit of a comprehensive valuation
strongly recommend that a comprehensive report be included in
the offering package of any business being offered at $500,000
you require a proffessional valuation service contact us