This is a question that most business owners ask, but NO ONE really knows for sure. Every accountant, CPA, Business Broker, M & A specialist, etc. might have an opinion, but they are just that – opinion.
The fact is that your business is worth ONLY what someone is willing to pay for it.
WHO will be buying it may have as much to do with the price as WHAT they are buying.
If you want to sell your business to a family member(s), or to a key employee, the price may be much different than if you decided to sell it to multiple employees, to your competition or if you were to sell it on the open market. Providing the guidance, insights and systems needed to successfully transfer a business to a willing buyer could take years – 3-5 year minimum and, in some cases, even longer.
The Value of your business is determined by many factors… industry standard valuation formulas, assets included in the sale, you’re willingness to fund some, or all of the purchase price, growth potential, competition, your customers and their satisfaction with your business, cash flow / margins of the business, your employees, your role in the business and how important will that role be in the future, and many many more.
We’d like to offer you the NO COST opportunity for You to get your “ValueBuilder Score”. This is a score from 1-100. Your Value-Builder Score is calculated through an analysis of your businesses performance on eight attributes proven to be important to acquiring companies when evaluating a business as a potential acquisition target.
Your value builder score is derived from the sum of these eight scores using our proprietary waiting bottle design using a quantitative survey of business owners in the professionals serving.
Along with your score, you will receive are result on all eight of the attributes the drive your ValueBuilder score. You will also see the average score for each attribute among the companies in your industry. To improve your overall value builder score, start by improving the areas you scored lowest of. At the end of each section there are series of questions for you to consider with your advisor.
The information you’re provided the means to guide you in increasing the value of your business
Scores: less than 50 points
- A score of left less than 50 me to have a number of opportunities to significantly improve the value of your company. According to our analysis of thousands of businesses like yours you could double the estimated value of the company by increasing your score to 80 or higher.
Score: 50 to 80 points
- A score between 50-80 means you have a number of opportunities to significantly improve the value of your company. According to our analysis of thousands of businesses like yours you could improve the value of your company by up to 71% by increasing your score to hire 280 are higher.
Score: 80 to 100 points
- A score of more than 80 major company is much more valuable than the average business we analyze. There are still further opportunities to increase the value of your business by pushing your score is close to 100 as you can.
Get Your ValueBuilder Score. Its FREE and and the answers and report will give you some valuable and needed information for you to understand about the current state of your business.
Identify WHO You’d Like to Buy Your Business. This isn’t the time for you to WISH or dream. This is time for some honest communication and justifies some serious discussion. Just because someone once said “it might be nice to own a business” doesn’t mean they are ready, willing and able to make it happen. If selling your business to a family member or Key Employee, there is much to consider. The more conversation and discussion the better.
Get your copy of the FREE REPORT… “12 Fatal Mistakes You Can Make When Transitioning Your Business”
I wish you all the insight and wisdom need to set your plans in place. Until next week.
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