How Do You Determine A Selling Price For A Business?
Many business owners have trouble determining how to price their business for sale. That is partly due to the fact that there is no magic formula that can be plugged in to determine the real “value” of a business. A business’ value is decided as a result of several different things including the type of business involved, its tangible assets, and those assets that are intangible such as existing contracts, vendor arrangements, customer lists, intellectual property and much more. There are multiple ways to assess a business’ value. However, following the steps below should help you determine a selling price for your business. Determine if you want to sell everything or only pieces of the business. For example, sometimes business owners want to keep certain pieces of equipment, furniture, or existing cash on hand. In order to lure a buyer into the business, you must be clear about what is and is not for sell as part of the business. Prepare a list of everything that you are willing to se
