Friday, November 19, 2010

Why Small Business Owners are Choosing to Value Their Own Business


Thinking Of Selling Your Business? Don’t Until You Hear This… Why Small Business Owners Are Choosing to Value Their Own Business

Selling your small business for its true value and at the very best price is definitely challenging, however surprisingly straight forward.  More small business owners are becoming aware of just how simple it is to sell their own business without having to pay the large commissions.

One of the most common reasons why small businesses which are on the market do not sell is inaccurate business valuation, resulting from an incorrect selling price that may either be too high or too low.  In determining business value, the mathematical expression of total assets minus total liabilities is only half the whole picture 

When preparing your small business for sale there are a lot of other variables that must be considered to come up with an acceptable business valuation especially to attract potential buyers.  As you are aware, no two businesses are the same, so why should they be valued the same way?  That is why it is imperative to calculate your business valuation and include absolutely everything - just the 'multiple' method may not cut it.

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