Assessments

Published Apr. 22, 2011

Pricing a business correctly is important if you really want to sell it. As a consultant I talk to many business owners, brokers, and agents on a daily basis about valuing businesses. It always amazes me on how some of these individuals come up with the values on small businesses being sold. No wonder only 30% of all businesses sell. In many instances no consideration is given to the total picture—will the available cash flow of the business be able to pay the debt of a loan, will the deal as structured or priced be attractive to financing sources, "cash" price vs. "note" price and how these factors figure into the equation.