The first step a business owner should take is to purchase a business valuation. The information from the valuation will be used to price the business and determine a strategy for holding the business longer or selling the business, whichever option the seller chooses.
There are more than a dozen ways to value a business depending on the type and size of company to be valued. The highest value comes from the business as “a going concern,” which means that it is running smoothly in the ordinary course of business activity. Your broker will study your business in comparison to industry benchmarks, other businesses currently for sale or recently sold, current market conditions, the challenges and opportunities your busines is facing, and lender perspectives.
The resulting answer a valuation provides is often a range of values depending on the most appropriate valuation model and deal structure models to provide a “Most Probable Selling Price” for the owner’s consideration. Many sellers then consult with their accountants and wealth advisors before making the decision to list the business for sale.
When Thrive Acquisition recommends a list price, remember that they are ready to explain the value to potential buyers and lenders to deliver that value to you at the sale because the valuation will include a recommended market positioning in addition to the recommended price.