BUSINESS BROKERAGE FOR SELLING A BUSINESS FOR MORE MONEY
Selling a business is among the most important and biggest transaction you may ever make. Selling a business is not like selling real estate, a vehicle boat, etc… Every business is unique and holds a different value depending on who’s running it. For example, an accountant would likely see more value in a CPA firm than an auto mechanic. Getting a professional valuation is the most important step in selling a business. Price wrong and you may never sell or leave money on the table. The preparation of the business is critically important to getting the most for the sale of your business. Their are specific documents that are expected by buyers if your want to get what your business is worth. You will need a Marketing Brief, an Business Financial Profile and Business Offering Report. The Marketing Breif gives buyers enough information to determine if they want to proceed to the next step. The Business Financial Profile includes a balance sheet, income statement and discretionary income. The business offering report is comprehensive and includes all information in the Business Brief and Financial Profile but adds detailed operation of the business.
How to Value a Business /What’s My Business Worth
Valuing a business is important if you are considering buying a business, selling a business or managing a business. Valuing a business is obviously important for buyers and sellers of business, but it’s also important a powerful management tool that too often gets overlooked by business owners. Consider your about to buy a major asset or hire a key employee or expand your product line … If you consider what the impact to your business valuation, you will likely make a better decision.
A business’ value is calculated with a formula. The business’ assets and ability to generate cash are the major components of value. Things can change rapidly in a business so a five-year period is generally accepted as a valid snapshot of how well the business is doing. If you can only provide one or two years of history, the business’ value may be reduced because the likelihood of past results repeating is less. Five years is considered optimal, but more the better.
There are multiple valuation models that are used to value a business which include: replacement value, cash flow, discretionary earnings, assets, and many more. The core metric in a business valuation is earnings followed by property, equipment, location, employees, customer loyalty, bankability, etc… A multiple is often given for a particular industry. Bigger companies have larger multiples than a comparable company in the same industry. This allows larger companies to buy smaller companies and increase their own business valuation. Most small businesses will sell between a multiple of one to seven. Large public companies have an average multiple of about 19, but some companies like Tesla Motors (TSLA) sells at a multiple of 80 as of this writing.
“How much is a business worth” is the most asked question by small business owner and entrepreneurs. It’s important information to know about a business If you want to buy, sell or optimally manage a business. Bizprofitpro will give you a free simple business valuation to indicate the range your business would likely sell for in today’s market. We also have online tools to help you calculate your own business valuation for a small fee. A detailed full business valuation is also available at a cost $295 to $1995 depending on the size and complexity of your business.
Business Opportunities/Business for Sale
Why buying a small business is the safest and easiest way to becoming an entrepreneur and achieving financial independence. An existing business will come with a track record that includes the most important element to a business – revenue. Buying a company allows analysis or (due diligence) to see how well the business is performing.
Buying your business opportunity will have employees, customers, equipment, procedures and other components already in place so you can get profit very soon if not immediately. There is no such thing as the perfect business, in fact, my recommendation is to buy a business that has things wrong but you can fix after you purchase. You want to buy a business with a big upside that your skills can positively affect.
I see businesses on a weekly basis that can double their revenue without huge capital investments. These are the kind of deals that make for a great business opportunity. It’s not unusual for a business owner to have circumstances that cause them to neglect their business. It may be health, divorce, boredom, incompetence or laziness, but for whatever the reason, there are tons of great business opportunities for you to profit from.
Being able to analyze a business is a key. If there was a such thing as a perfect business, you would not likely be able to afford it or wouldn’t want to pay the price. You can find great businesses for sale that have just the things wrong that you can fix. The first part of analyzing a business is doing a business valuation. A business valuation will tell you what the business is worth. A business valuation can be free and simple or complex and expensive depending the size and complexity of business. Bizprofitpro offers business valuation services and business valuation tools so you can know what any company that you are considering buying is really worth.