There is a very big difference between selling a property and selling a business. The biggest difference is the variability or the subjectivity of pricing a business compared to land and a commercial building or a residence.
Before selling any business, it is a wise decision to have a professional business brokerage company complete a company valuation. There are also some handy online tools that a Las Vegas business can use to get a general idea of the market value of their company, but this is just a general value that is not as specific as a professional business valuation.
The Process
With a full company valuation, the professional broker will provide a value or a dollar amount determines the owner’s interest in the business. This will include more than the assets that the business owns.
To determine this value, the valuation process will include a review of the business revenue as offset by any debts that the company may owe. This will also include assets that are being sold as part of the business.
In addition, the valuation will also take into consideration the customer base and any ongoing contracts that are sold with the business. It will also factor in the general market conditions for the particular business within the geographic location and the market as a whole.
Hiring a Professional Business Broker
Any Las Vegas business owner can use free online tools to get a rough company valuation based on customers, revenue and other tangible factors. Hiring a professional business broker or taking advantage of a free business valuation through a reputable company will be essential to get a more specific valuation for the company.
The valuation is not necessarily the asking price for the company. It is an important starting point as pricing the business too high or too low in the market will impact the return on investment for the seller and the time it takes to close.
