My name is Douglas McDonald and as a Certified Business Valuer (AVI) I deal with all the facts and financials to obtain an unbiased market value of any business, the probabitity of a sale in the current market (seller) and due diligence, value and probability of a purchaser (buyer) actually buying.
To do this we must first go over all the financial information in detail and normalise it to determine the real net profit of the business. In most businesses this figure is then capitalised (or multiplied) by .5 to 2.75 (risk) to determine its value.( Appraisal )
I am also a Certified Practising Business Broker (AIBB) and unlike most business brokers I will not list a business without doing a detailed appraisal so we both actually know the real market value and saleability. Why would you list a business not knowing its realistic current market value and the probability of it selling. The reality is, it is the buyer or finanacier that we must satisfy.
Only about one in five businesses listed actually sell because they are overpriced or not prepared properly for sale! Do you want to list your business or sell your business? Again it is the buyer or financier that we must satisfy.
Your Detailed Business Appraisal will also identify key areas of improvement, which once addressed, could greatly influence and increase the saleability of your business and influence a buyer to purchase.
What is your motivation or reason to sell your business at this time?.
Who is the legal owner / owners of the business, who makes the decisions and are they in agreement to sell the business now?
What entities are involved, Sole Trader, Partnership, Trust, Company etc.
Have you done any research or have any idea what is involved to prepare it properly for sale, how much work and effort you still need to put in. How you are feeling emotionally, and how it will affect your partner or family life?
Has it ever been explained to you how most (SME) Small Medium Enterprises are valued or appraised to determine the current market value? Most Business Value is directly related to profitability and risk to obtain that profit. The closer the asking price to market value, the quicker the business will sell.
Do you have a detailed ‘Exit Plan’ in place that you have been working on for quite some time in order to maximise the value and achieve a sale in the shortest possible time?
Who do you think you would buy your business? Have you ever looked at your business from a buyer’s perspective?
Are you aware that only about one in five businesses listed for sale actually sell? Selling a business can be very emotional, complex, time consuming, expensive and energy draining so it is critical to have the right team of professionals engaged to help you navigate your way to a successful sale.
Engage the right team of professionals now starting with a detailed Business Appraisal from Douglas McDonald “ Sell Your Business Analyst”
What will you do after the sale is complete? How will you spend the time that you will have after the sale and with who will you spend it?