Business Sales Process Step 1: Business Valuations
The first step in selling your business is to figure out how much it is worth. Determining the fair market value of your business is an involved and complicated process which includes the analyses of many variables and generally requires a California business valuation expert who applies valuation techniques and “benchmark” data unique to the industry in which your business operates.
Once you've provided us with certain information and documentation, we will apply advanced business valuation methods to arrive at an appropriate value of your business and a suggested listing price.
Business Valuations – Possible Approaches
Although there are many business valuation methods that can be used when estimating the value of a business, they tend to group within three possible approaches:
- Asset Based Valuation
- Market Comparison Valuation
- Income Based Valuation
The business valuation method most commonly used (and most appropriate business valuation method) for a small business is an Income Based Valuation.
You should be very careful when selecting a California business broker – select one that will perform a comprehensive business valuation as part of the listing engagement. At Quantum Business Solutions Network we do just that and at no additional cost to our client. To learn more about the Income Based Valuation model - see our article Business Valuation Methods: Arriving at a Listing Price
