Why an Honest Business Valuation Is Essential When Selling Your Business

by | Feb 21, 2018 | Business

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There are many accountants, bookkeepers and taxation specialists who will draw your attention to traditional methods of valuing your business. These will not help you when you need a realistic business valuation in Santa Clara County, CA. Your selling price must match what the market confirms it will pay.

Selling Too High or Too Low

Unless you are selling to a close family member, you are going to want to achieve the highest possible valuation for your business to ensure you can clear debts and walk away with sufficient profits so that you can consider your next investment.

Where the valuation on your business is too low, perhaps to achieve a quick sale, you may not raise sufficient finance to clear any debts and may not have sufficient funds to consider funding your pension or next business purchase.

By contacting expert professionals for your business valuation in Santa Clara County, CA, you will be able to discuss market valuations and variations that will affect your selling price.

There may be too much or too little competition for your business in your town, state or across the US. Your business may be too niche or over popular to achieve a sensible valuation that meets all your criteria.

Your experts will understand how to value your business honestly, so that market conditions, finance available and the state of your business are reflected correctly to help you achieve a mix between your requirements of a high valuation and a quick sale.

The business valuation in Santa Clara County, CA will need to assess your tangible and intangible assets to that your goodwill or going concern value reflects what investors are prepared to pay.

Where your valuation is a long way from that suggested by the experts, you may need to consider making changes to your business. Alternately, you should plan to improve your business sales and profits and set a date in the future, which may be a year away, to meet your specific requirements.