My Business is Worth What?
California Association of Business Brokers says know the value of your business
October 22, 2009
(Sacramento, CA) The California Association of Business Brokers (CABB- a non profit trade organization) says if you are a small business owner looking to sell your business but are waiting for the economy to turn around, use this time to start preparing. One of the most vital steps in this process is to understand what your business is worth.
Ron Hottes, president of CABB and of several Business Team Business Brokerages says that a business broker’s opinion of value can provide you with an objective view of what your business is worth and is an important piece in determining your asking price. “A business broker’s opinion of value gives you a realistic starting point to work from and can give small business owners direction when determining the right time to sell.”
Before thinking about selling your business, CABB says there are some key things to consider:
Take an objective approach: Having a business broker’s opinion of value from a CABB Certified Business Broker automatically gives you the results and creditability you need. Having this neutral party take a comprehensive look at your financial records and the current market is the best way to get an honest picture of the worth of your business.
Know what you need: Have an idea of what you need to make off the sale of the business so you can be as prepared as possible. If you are selling because of retirement, knowing what you can expect to make from the sale is an important component of your exit plan.
This is the starting point: A business broker’s opinion of value is only a starting point in selling a business. If the opinion of value comes back less than what you anticipated, you know you have time to do things like improve sales and review operation processes to make your business as streamlined and profitable as possible.
“What is important for business owners to know is that a down economy is just one part of the cycle we are in and an upswing will occur,” Hottes stated. “Those small business owners who take the time now to improve and prepare their businesses for sale will be the ones who will see their business sold at the best price possible.” www.cabb.org.
Source: The California Association of Business Brokers
