BUSINESS VALUATION*

IN-DETAIL

Getting a professional business valuation shows buyers that you are serious about selling your company. Many buyers quickly tire of sellers who are testing the waters and are not adequately prepared. By obtaining a valuation, you clearly communicate to potential buyers that you are not only motivated and serious about selling your company, but have also taken the necessary preparatory steps in selling.


Obtaining a valuation often increases the selling price of your company. Because the science of business valuation is likely a confusing subject to most buyers, having either an independent third party or an experienced professional value your company makes the buyer feel more comfortable in paying your asking price.


Companies that obtain a business valuation typically sell faster than companies that do not. Why? Companies that have prepared for the sale and have had their business valued sends the message to the buyer that the information needed for due diligence is not only readily available but can also be relied upon. This often shortens not only the length of due diligence, but also makes negotiations run smoother and quicker.


Having your business valued will increase the likelihood that it will sell.The number one deal killer relates to a company’s financial statements.

By getting your business valued, you force yourself and the valuation company to perform a financial due diligence upfront, which will likely uncover problems that would derail most deals during due diligence. By uncovering these problems upfront, you have the ability to solve them before placing your company up for sale.

Steps in Valuation Process

Whether you are an experienced business owner who has owned multiple businesses or a first-time buyer who is intimidated by the process of buying a business, we can make the process of buying a business simple.

  1. Preparation/Owner Interview

  2. Financial statement normalization

  3. Defining the valuation method(s) to be used

  4. Application of valuation method(s)

  5. Reaching value conclusion

* Brokerage and Evaluation services provided in association with WM Bruno Business Brokerage

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