Business Valuation / Opinion of Value or Business Appraisal?

• Business Valuation / Opinion of Value
  
  A Professional Business broker will not attempt to sell a Main Street small business, ($100,000 to $1,000,000) that has not, at the least, had a Business Valuation completed. This activity puts the Seller in CONTROL of the selling process and gives the broker the authority necessary to effectively promote and sell the Business for the highest price possible. [These Valuationas and Opinons of Value are free to the seller when the Broker is listing the Business for sale]


• For upper Main Street and Lower Mid Market businesses ($1,000,000 to $5,000,000) an independent third party appraisal is highly recommended for the following reasons:
  
  • If financing will be used in the purchase process, an independent third-party appraisal will be a funding requirement of the financial institution.
  • The price will be driven by the Seller and not at the whim of the Buyer and his agents.
  • An appraisal creates a sense of urgency with less hassle.
  • It forces everyone to start on the "same page".
  • Regardless of whom you talk to, all "uncompromised" professionals will recommend it.
  • The appraisal sets the attitude from the beginning that things will be done right.
  • An appraisal done in your interest avoids LEAVING MONEY ON THE TABLE in the biggest event of your life. It would be devastating to later find out your business appraised for more than you agreed to sell it for.
  • An appraisal confirms sincerity to all parties. The Buyer will obviously know you are serious and that you know what you want.
  • An appraisal leaves no doubt that you know what you are worth and will help rule out tire-kickers.
  • Better prices are achieved with substantiated prices! Appraisals give us the best chance to achieve the highest price for your business.
  • There is always a chance that we will have to justify our decisions in litigation. This is why we only use the best appraiser who will "win our court", if necessary.
  • An appraisal reduces wasted time in the business transfer process. When we find an interested party is not the time to waste time. Let's get it done right the first time.
  • BOTTOM LINE: An appraisal removes the negative element of chance and allows us to control the price and timing from your prospective.

In summary, a third party appraisal provides:

Control: It gives you control over the whole process.
Protection: Protects the Value of your Business. Leaves no money on the table.
Believability: It makes everything that you do believable.

How Much Should a Business Appraisal Cost?


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