Selling your business can be a lengthy process, with many different stages that both you and the buyer must go through to ensure that both parties are satisfied with the outcome. One of those stages is the business valuation, and it is arguably one of the more important parts of the process, as it gives you an idea of what you can expect from the sale, and tells the buyer what they can expect to pay –and what specific assets they will be getting for their money. You can, of course, conduct the business valuation process yourself, but this is not to be recommended: without the expertise and impartial nature of an outside consultant, you will likely misvalue your business.
Here’s why you should use an established mergers and acquisitions consulting company to avoid blindspots.
Another common mistake when it comes to valuing a business stems from a lack of thoroughness. You need to evaluate absolutely every single part of the company –equipment, premises, leases, contracts, warranties, suppliers, customers, competition, etc. Along with this, you should have a fairly good idea of what the immediate and mid-term growth potential is –this will affect the pricethat a buyer is willing to pay. Mergers and acquisitions experts can help you here, as they should have experts on-hand in conducting accurate business valuations.