There comes a time where certain small business owners are ready to sell. You will need to take certain steps to answer the question how much is my company worth. Pricing a company involves steps that must be performed accurately. Improperly valuing your business leads to a world of problems you don’t want to deal with. One study finds that 7.842 small businesses were purchased in 2016. In this post, you will learn how to properly price and sell your company.
Finding and Gathering Financial Documentation
Having your financial information in order is essential. A business owner will be concerned with finding the right buyer. However, buyers must know that they are making the right decision. Having financial statements lets buyers know more details about your company. Items to include when preparing financial information are income and cash flow statements. A balance sheet should be included as it lists information pertaining to assets.
Valuing Business Assets
A buyer can only learn so much by looking at financial information. You will need to accurately value the assets of your business. Business assets have nothing to do with the money your company earns. Assets include physical items pertaining to your business including equipment, furniture, and property value. One study finds that there are 15 potential buyers for every business that goes up for sale. Taking the time to ensure your assets are in order will likely be a very beneficial project in the long term.
Why it Makes Sense to Have Help Selling Your Company
Deciding to sell a business is a major decision. Research shows there are nearly 28 million small businesses solely in the United States. Selling a business is much easier with the help of business brokers. These professionals help every aspect of preparing the sale of your business. Businesses for sale need to have all financial and asset information prepared. You’ve read about how detailed and accurate this information needs to be. Business brokers will help you answer the question how much is my company worth.
In closing, there are a few steps that go into selling a small business. Many business owners first wonder how much is my company worth. Buyers want to know the value of a company that they are interested in purchasing. You will need to prepare accurate and thorough financial statements for any potential buyers. You will need to have information regarding the assets of your business. It’s wise to have a business broker help with a small business valuation.