Your business may be your most valuable asset, so it is important that you develop a proper understanding of its worth. This is especially true if you plan on selling your business. We take the responsibility of helping you determine an appropriate value and asking price very seriously. Your Sunbelt Business Broker has had extensive training on the various methods of business valuation and can help you price your business appropriately.
Most Probable Selling Price When Selling Your Business
One of the most critical steps in this process is the determination of what we expect will be the most probable selling price for your business. This process involves gathering a tremendous amount of data for analysis on a confidential basis including: financial statements, operational details, inventory, furniture fixtures and assets, market conditions, company history, building details, leases, staff, proprietary technologies and processes. We need to look at every single consideration of value in order to determine the Most Probable Selling Price (MPSP) of your enterprise.
An important part of determining the MPSP of your business involves revealing and reflecting some of the hidden value of your business that doesn’t always show up on the financial statements. This process is called recasting of financials, and it is an essential process we go through with you to most accurately reflect the true value that a purchaser might actually expect as the future owner of your business.
Once all of the information has been collected, digested, analyzed and researched against similar businesses, comparable purchase options and industry standards, we present you with a comprehensive report that forms our professional “broker’s opinion” of what we realistically think your business might sell for in the current marketplace.
Professional Valuation Standards
Our Most Probable Selling Price recommendation is based on an evaluation of 13 different approaches to business valuation that have been developed and recommended by the International Business Broker’s Association (IBBA). Our valuation methodologies comply with the Uniform Standards of Professional Appraisal Practice (USPAP) and the standards set out by the Institute of Business Appraisers (IBA).
An estimation of value involves extensive financial and mathematical calculations, detailed industry analysis, objective business analysis, and the use of comparable statistics and industry research. The result is an exceptionally detailed and insightful report that has tremendous value to any business owner.