| Any
one who has ever purchased a new home knows that
an independent appraisal report had to be produced
to complete the sale. A business is many times
more complex. The key to having a viable valuation
performed on a business is to have it performed
by an independent third-party service. |
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Without
a third-party report, a business owner should
be prepared for heavy negotiations because
it will be your opinion of value versus a
buyer's opinion.
Be wary of a business broker who prepares
his own valuation report. A buyer will place
no credibility in his opinion because he has
a vested interest in obtaining a higher price
than can be justified because it will increase
his commission. A buyer will normally place
no credibility in a value arrived at by the
business owner's accountant for the same reason.
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| There is a big difference
in the quality of valuation reports that can be
prepared. Many brokers rely on generic valuation
software reports that are based on unproven theories.
Is the report designed as a marketing tool, or is
it something that has to be put in a drawer and
not shown to a buyer? Was a true analysis of the
business performed? Where factors such as industry
trends, age of the business, client base, and other
factors that will affect the price taken into consideration?
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EMPIRE Business
Brokers Offices use the services of our Buffalo
headquarters to perform this service.
EMPIRE Business Brokers have consistently
produced higher prices and smoother sales when a
professional report is presented as part of the
business offering package than similar businesses
produced that did not have the benefit of a comprehensive
valuation report.
We strongly recommend that a comprehensive report
be included in the offering package of any business
being offered at $500,000 or above.
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If you require a professional valuation service
contact us today:
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