What is Your Business Really Worth



How do you arrive at a true value for your business?

Financial statements and their meanings have to be looked at in detail because it is important to be clear on the past performance and future potential of the business. Make sure you have considered all areas when arriving at your own conclusion of the value of the business.

Check these over with your advisers and, if necessary, ask the seller further questions. Be clear on all outstanding issues before finalising a deal.

Most business owners will always feel that their business is worth more than the buyer believes it is worth. It is important that the price is fair and correct for everyone concerned.

This fair value will relate back to the profitability and potential of the business.

Some business owners will purposely set a high price because they think they can drop the price later on. This is not always good, because the longer the business is advertised in the papers, the less interesting it will be to other buyers.

People will perceive there must be something wrong with the business; otherwise it would have sold long ago. At the end of the day, the market determines the price the b...

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