Pricing usually presents the most important concern for a
business owner who is thinking of selling. If the business
is priced too high, then prospective buyers will likely not
show serious interest. If priced too low, the seller will not
receive fair compensation for building a profitable business.
business owner who is thinking of selling. If the business
is priced too high, then prospective buyers will likely not
show serious interest. If priced too low, the seller will not
receive fair compensation for building a profitable business.
| Business Valuations |
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| . . . your total solution for buying or selling a business. |
Copyright © 2007 The Entegra Group • All Rights Reserved |
| Business Sales & Acquisitions |
| Confidentiality • Integrity • Expertise |
| 1-800-434-1629 |
| Call us Toll-Free Today! |
A number of factors – including the size and type of business, location, employees, gross
revenues, market conditions, and cash flow – will come into play when pricing a business.
Some transactions will warrant a "third-party" valuation in order to establish (and help
potential buyers understand) the selling price for a business. Our firm can help business
owners decide whether third-party valuations are warranted and which type would be most
appropriate for a particular situation.
Particularly for larger transactions, there are definite advantages to obtaining an objective
opinion from a firm that specializes in performing valuations for companies. In addition to
putting the business owner's mind at ease regarding price, an independent opinion of
value can enable the seller to set the framework for discussions with buyers. At the same
time, it provides important information for prospective buyers to consider and can offer
insights into deal structures that will produce the best return for the seller while justifying
the price, terms, and other factors to buyers. In this way, third-party valuations work as an
effective sales and negotiation tool and often eliminate intense price negotiations.
The Entegra Group has partnered with GCF Valuations – one of the top valuation firms
in the country – to provide independent valuation reports whenever necessary. They
perform numerous valuations each year and utilize comprehensive databases of economic
and comparable business transactions. Their skilled analysts dedicate a great deal of time
to researching historical transactions, reviewing pertinent court cases, and conducting a
variety of detailed financial analyses. By utilizing these methods, they can ensure that
every assignment receives the most accurate and credible valuation conclusions possible.
For business owners who anticipate an offering price of one million dollars or more, we
recommend that a comprehensive independent valuation be performed prior to going to
market. A smoother, more streamlined sales process usually results when independent
valuations are available as part of the confidential business offering package.
revenues, market conditions, and cash flow – will come into play when pricing a business.
Some transactions will warrant a "third-party" valuation in order to establish (and help
potential buyers understand) the selling price for a business. Our firm can help business
owners decide whether third-party valuations are warranted and which type would be most
appropriate for a particular situation.
Particularly for larger transactions, there are definite advantages to obtaining an objective
opinion from a firm that specializes in performing valuations for companies. In addition to
putting the business owner's mind at ease regarding price, an independent opinion of
value can enable the seller to set the framework for discussions with buyers. At the same
time, it provides important information for prospective buyers to consider and can offer
insights into deal structures that will produce the best return for the seller while justifying
the price, terms, and other factors to buyers. In this way, third-party valuations work as an
effective sales and negotiation tool and often eliminate intense price negotiations.
The Entegra Group has partnered with GCF Valuations – one of the top valuation firms
in the country – to provide independent valuation reports whenever necessary. They
perform numerous valuations each year and utilize comprehensive databases of economic
and comparable business transactions. Their skilled analysts dedicate a great deal of time
to researching historical transactions, reviewing pertinent court cases, and conducting a
variety of detailed financial analyses. By utilizing these methods, they can ensure that
every assignment receives the most accurate and credible valuation conclusions possible.
For business owners who anticipate an offering price of one million dollars or more, we
recommend that a comprehensive independent valuation be performed prior to going to
market. A smoother, more streamlined sales process usually results when independent
valuations are available as part of the confidential business offering package.
| >>> Central Coast Small Business Owners <<< Are you thinking of selling now or in the near future? Please contact us to request a pricing analysis that includes a market evaluation and potential selling price range for your business. |
Most owners do not have the knowledge or experience to properly determine the value of
a business; in fact, many will seriously undervalue their business. It is also not uncommon
for sellers to equate "value" with the "price" they hope to obtain. In reality, the price that a
business will sell for is often far removed from the seller's perception of what it is worth.
The Entegra Group has the expertise to determine a realistic selling price, and enhance
the marketable value, for small and mid-sized businesses. We know the marketplace and
the actual prices paid for businesses. We also know what buyers are looking for and the
reasons they are considering the purchase of a business. Perhaps most importantly, we
know how to deal with “perceptions” of value and the reality of the marketplace.
Every business is unique and will present a number of distinctive qualities, opportunities,
and challenges to the mind of a prospective buyer. Because of this, the concept of "fair
market value" is considerably more complex in a business opportunity transaction than in
other arenas. It is important to understand that value is largely related to risk and the
ability of a business to generate a future income stream that will be satisfactory to the
buyer. When it comes to the actual selling price, the buyer’s perspective – income, debt
service, working capital, return on investment, etc. – will matter most.
The bottom line? No matter who places a price on a business, the marketplace will
ultimately determine the actual selling price.
a business; in fact, many will seriously undervalue their business. It is also not uncommon
for sellers to equate "value" with the "price" they hope to obtain. In reality, the price that a
business will sell for is often far removed from the seller's perception of what it is worth.
The Entegra Group has the expertise to determine a realistic selling price, and enhance
the marketable value, for small and mid-sized businesses. We know the marketplace and
the actual prices paid for businesses. We also know what buyers are looking for and the
reasons they are considering the purchase of a business. Perhaps most importantly, we
know how to deal with “perceptions” of value and the reality of the marketplace.
Every business is unique and will present a number of distinctive qualities, opportunities,
and challenges to the mind of a prospective buyer. Because of this, the concept of "fair
market value" is considerably more complex in a business opportunity transaction than in
other arenas. It is important to understand that value is largely related to risk and the
ability of a business to generate a future income stream that will be satisfactory to the
buyer. When it comes to the actual selling price, the buyer’s perspective – income, debt
service, working capital, return on investment, etc. – will matter most.
The bottom line? No matter who places a price on a business, the marketplace will
ultimately determine the actual selling price.
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| A realistic price can be key to the effective marketing and sale of your business. |
