Business Valuation: One of the Most Important Steps in Sales Transactions

Posted By : Phineas Gray , on Mar, 2015

 

Successfully selling a company begins with a detailed, meticulous business valuation. Business valuations make it easier for sellers to make decisions regarding the sale of their companies, such as setting a suitable asking price. Valuations also benefit buyers by allowing them to locate profitable business opportunities that align with their budgets. Whether you’re planning to sell or buy, a qualified brokerage firm can help you make the right choices from start to finish. Mergers and acquisitions are complex processes, and having professional guidance to fall back on is crucial.

How are Businesses Valued?
There are a number of standards brokers take into account when valuing a business. For one, the conditions of the industry a business is classified under are evaluated, and how those conditions could affect sellers and buyers in the future. Additionally, brokers review financial statements to assess the growth or decline of a business, such as its assets, cash flow, and overall profitability. Valuations benefit individuals and companies on the sell-side and buy-side. So, it’s important to consider all of these elements in order to thoroughly value a business.

Why Does It Matter?
Business sellers stand to gain much from a professional business valuation. Minnesota business brokers and advisors are experienced in assessing companies in various industries. Despite aiming for confidential, exclusive marketing campaigns, many sellers want to sell their businesses quickly and profitably. Business valuations are a crucial kick-starter to putting a company on the market, as the asking price should always be fair and reasonable. Naturally, appropriate rates reduce the amount of time a business remains on the market, and grabs the attention of more interested, quality buyers.

Unbiased Advice & Guidance
Based on the results of the valuation, your broker can help you determine whether or not you should sell your business now or in the future. Once business valuations are complete, sellers are able to move on to the next stage of the merger or acquisition process in confidence. Reliable brokers offer straightforward objective advice, and keep their clients’ best interests in mind at all times. If selling your business now is a profitable decision, your advisor will keep you informed, and serve as a buffer zone and valuable source of information.

Sunbelt Business Advisors works through a worldwide network of 200+ offices. To request a complementary business valuation, visit their website at http://www.sunbelt-business-advisors.com.

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