Selling a Business and Free Business Valuations

August 20, 2011 by  Filed under: Sales 

Whether you run a sandwich bar or a convenience store, selling your business is a potentially stressful time and the first step is usually to make use of a free business valuation.

There is a myriad of businesses for sale here in the UK and one can very easily become overwhelmed with the number of different asking prices for similar businesses. There are many different factors to take into consideration.

Average Takings

This is generally expressed on a weekly basis for small independently ran businesses, however, when filling in your details on some online business valuation calculators, you may well be asked for the annual figure.

Lease or property details

It is straightforward if you own the property, but you may be involved in a lease where you rent the premises for a set period. You would normally expect brief lease information when you are selling your business. This would normally state the remaining length, monthly or annual cost and any special terms or reviews.

Unique Selling Points

A business valuation should take into account any unique selling points. As these are often subjective points, it is normally the area that would remain unobserved by any online business calculators.

Business Category

It is important to clarify the type of business for sale as this often steers the valuation methods to make certain assumptions, such as a typical gross profit margin based upon annual turnover. It will be necessary to substantiate this with audited accounts in the fullness of time to any prospective buyer, however, this can be a very useful indication.

Ideal Purchaser

Whether you are selling a business on the open market or privately, it is important to state what kind of buyer the business would be suited towards. For example, if a business cannot be operated as a solo operation, it would be prudent to state that the business would be suited to a couple, or management team.

It is vital that the correct valuation methods are used to value a business as you need to ensure that it will be put to market at the correct price. This may differ from the price you expected to receive, whether it be higher or lower, but it is important to get a fair price for the business you have built up as proprietor.

Whatever your intentions with your business valuation, whether it is to sell the business or purely to satisfy your curiosity, just use a little patience as the right figure could lead to a different decision.

If you would like a Free Business Valuation for any kind of UK business, please visit the following site and you will be contacted www.blacksbrokers.com

Article Source:
http://EzineArticles.com/?expert=Daniel_P._Boyd

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