SUMMARY
A confidential and FREE Business Valuation from one of our experienced Business Brokers will be the MOST VALUABLE (and Free) thing you can do for your business. While the Business Valuation will be very comprehensive, the reasoning to get one is quite simple.
- A Business Valuation is the first step towards planning the sale of your business. With a comprehensive business valuation, we can approach a few SBA lenders and get your business “pre-qualified” for a business acquisition loan.
- Once your business get the green-light to ba an “SBA” qualified business, we can market your business for sale to a larger group of buyers. The benefit to a Buyer is clear, an SBA business acquisition loan means they can buy your business with a small down payment. The buyer gets your business for 10-30% down … you, the Business Seller, gets all of your money at closing!
- Since we can market your business for sale to a larger group of Buyers, the economic theory of supply and demand dictates that the value of your business will INCREASE. More potential BUYERS = LARGER PRICE.
Want to request a Confidential Business Valuation? Contact us today: https://1800bizbroker.com/schedule-a-business-valuation/
The summary above contains all you need to know about the reasons a Business owner should get a Business Valuation. If you are thinking about selling your business I would be happy to walk you through the process.
Business Owners Considering the Sale of their Business should get a Business Valuation to Maximize their Sale Price
As a business broker, I often encounter entrepreneurs who have poured their blood, sweat, and tears into building their businesses. When the time comes to move on to the next chapter of their lives, whether it’s retirement or pursuing new ventures, one crucial step often gets overlooked: getting a comprehensive business valuation. Let me shed some light on why this step is not just important but can be a game-changer for business owners looking to sell.
First and foremost, understanding the true value of your business is paramount. It’s not just about having a rough estimate in your head or going by what similar businesses in your industry are selling for. A professional business valuation provides an objective assessment of your company’s worth, taking into account various factors such as financial performance, market conditions, growth potential, and industry trends. This valuation serves as a solid foundation for setting a realistic asking price when you decide to sell.
But why is setting the right asking price so crucial? Here’s where things get interesting. One of the key benefits of having a business valuation is its role in facilitating pre-approval for SBA financing. This means that potential buyers can secure SBA loans with a down payment of just 10-30%, making it much easier for them to acquire your business. And what does this mean for you as a seller? It means a larger pool of qualified buyers vying for your business, ultimately driving up its value.
Let’s delve deeper into this. SBA loans are attractive to buyers because they offer favorable terms and lower down payments compared to conventional loans. However, to qualify for an SBA loan, the business being purchased must meet certain criteria, including a reasonable asking price based on its valuation. By having a professionally conducted business valuation, you not only increase the likelihood of securing pre-approved SBA financing but also attract serious buyers who are willing to pay a premium for a well-valued business.
Furthermore, leveraging the purchase of your business through SBA financing can benefit both you and the buyer. For you as the seller, it means a smoother transition as the buyer is more likely to have the necessary funds readily available. It also reduces the risk of deal fallout due to financing issues, ensuring a faster and more seamless transaction. On the buyer’s side, it opens doors to opportunities they may not have been able to pursue otherwise, enabling them to step into business ownership with confidence and support from the SBA.
In essence, getting a business valuation is not just about putting a number on your business; it’s about unlocking its full potential in the market. By understanding its true worth and leveraging pre-approved SBA financing, you can attract more qualified buyers, increase the value of your business, and ultimately achieve a successful sale that benefits both parties involved. So, if you’re a business owner contemplating the next chapter in your journey, don’t underestimate the power of a comprehensive business valuation—it could be the key to realizing your dreams.
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