How You Sell Your Business and Price

How much is my business worth? That depends. Of course it depends on profits, sales, EBITDA, and other traditional valuation metrics. A surprisingly important factor, however, is how you choose to sell it. We have actually seen examples in our merger and acquisition practice where business owners have received less than 50% of the value they would have received had they elected to sell using a professionally managed competitive bid process.

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[BusinessesBrokers]

Before selling your business you must get to know about important papers which you have to give to the buyers. Just checkout some agreement.

[bacardiiiiiwantyme]

great!! very informative.

[label1877]

@TheEquityPirate No way, the business is worth what someone is willing to pay for it. The "book value" is a rough guide. For example... using your car analogy... you just try to buy a clean Honda Accord or a Chevy Silverado in December or January at "book" value when car dealers are stocking up their inventory for tax return business, you will pay much more. If you get a bid process going on your business you have for sale, you will blow away all book values. That's what I do.

[cgrimes1010]

Equity Pirate, you are incorrect. Good will is a measurable asset of a business and it most certainly is recognized by the IRS and accounting practices. You shouldn't be passing along information about something you obviously know nothing about.

[TheEquityPirate]

WRONG! Goodwill is imaginary, hypothetical and completely arbitrary. When you buy a used car, you don't buy the sellers Goodwill. In accounting Goodwill is not recognized, and the IRS doesn't recognize Goodwill either. A business owner is merely a caretaker of the business. If the selling price is more than book value, you're paying too much. The business isn't worth any more than that.