Learn about the difference between price and value when selling a business.
Business brokers know that putting a price on a business is not the same as putting a value on that business, and each will have a different impact on the amount that a buyer will pay. To get the best price possible when selling your business, a broker will help you determine the value of your business, rather than simply putting a price tag on your company. Continue reading to learn more about the difference between the price and value of a business.
Importance of Value
The value of a business doesn’t only relate to discretionary earnings. For example, if your business invests in areas that will provide larger dividends in the future, your business is more valuable to potential buyers and may result in a higher sales price. Value is fluid and will change over time. Your business has a current value to you, but it likely has a different value to a buyer.
Value vs. Price
The price of a business is simply what the buyer will pay for the sale. While many sellers will be focused on the price tag, it’s more important to realize the highest value when it comes time to sell. The best way to do this is to plan ahead for the sale of your business as far in advance as possible, preferably a few years. Also, you want to invest in your business up until the final day of the sale. This may mean investing in software upgrades, equipment, or a new website and blog to ensure everything is in top shape. The more appealing your business is, the more value it has.
How Much Is My Business Worth?
It can be challenging to know how much your business is worth- that is where a business broker comes into play. A broker knows that there are many factors to consider when selling a business, including knowing how much it is worth, how to find a qualified buyer, how to promote the sale of your business, and more. At Atlantic Business Brokerage, we answer all of these questions and work with each individual seller on a one-on-one basis to assess their particular needs, address their concerns, and do our best to ensure they achieve the results they desire.
Sell With Atlantic Business Brokerage, Inc.
At Atlantic Business Brokerage, our mission is quite simple; we help sellers sell businesses, and buyers buy businesses! Over the past 30 years, ABBI has facilitated the sale of countless commercial properties, businesses, and franchised locations. With our unparalleled knowledge of the business purchase and sale industry and our network of contacts, we offer services to both buyers and sellers that no other brokerage firm can match.
Contact us to discuss your business buying and selling goals today at 410-561-9800, or Toll-Free at 800-279-7569. Email us at [email protected], and follow us online on Facebook and LinkedIn.