Pricing

Pricing a business can be challenging.

Sellers are selling future opportunity; buyers are buying historical performance. It's no wonder that buyer and seller can differ so widely in their views of what constitutes the fair market value of a given business.

In addition, if a seller sets the asking price of his business too high, this may discourage buyers from making offers or even investigating more deeply into the details of a company.

To avoid these and other potential pitfalls, sellers would be wise to invest in an independent third party business valuation. Independent appraisers inject an objectivity into the process that is not generally supplied by the seller or his accountant.

Furthermore, business valuations can pay for themselves many times over by both supporting the asking price and by assisting the buyer and his financial advisors during their analysis of the company. In many cases, this assistance can substantially shorten the selling process.