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One
of the keys to having a successful transfer
of a business is to have a viable valuation
performed on a business by an independent
third-party valuation service.
Without
a third-party report, a business owner
should be prepared for heavy negotiations. A
buyer will place little credibility in a
Seller’s or Broker’s valuation because
they have a vested interest in obtaining a
higher price.
There
is a big difference in the quality of
valuation reports that can be performed.
Factors such as industry trends, age of the
business, client base, and other factors
should be taken into consideration?"
Catalina
Financial Group uses the services of the
best known and largest, independent
third-party valuation services in America to
perform these reports for our clients who
are trying to secure full market value for
their business. These services know what
price other businesses, like yours, are
really producing. Their reports are reader
friendly and can be shown to prospective
buyers. They go much farther than other
reports because they recommend which assets
to sell and which to keep. The same is true
for the liabilities of the business. They
recommend the deal structure that will be
most likely to produce a completed
transaction and at the best obtainable
price. They do not stop there. They totally
justify that the price recommended is the
best obtainable for the business owner and
the report proves the asking price is
realistic to a prospective buyer.
Business
brokers report that they have consistently
produced higher prices and smoother sales
when one of these reports is presented as
part of the business offering package or is
available to present to a buyer to confirm
value.
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