How to Determine the Selling Price for Businesses in Raleigh

When Raleigh business owners make the decision to sell their business, there are multiple variables to consider throughout the process. To put it simply, it’s not as easy as listing a business as “for sale” and hoping for the best.

VR Business Brokers is available to Raleigh business owners who need help navigating the complicated process of listing and negotiating business sales. Business brokers are an excellent resource to depend on when the time comes to making a business sell, as they possess invaluable information regarding market trends and other relevant statistics. For example, a lot goes into determining the listing price for a business, a lot more than owners may consider.

Business man hand drawing  graph

3 common methods for determining the selling price of a business, with each approach considering different variables related to business operations are:

  • Asset-Based: This approach is typically a starting point for brokers valuing a business. Solely considering the market value of tangible assets is not sufficient as it does not take into account other intangible assets, such as the business’s goodwill. It’s best for brokers and owners to consider other variables, as relying on hard assets is not comprehensive for valuing the business entirely.
  • Market-Based: This method relies on the experience of brokers selling other similar businesses in the local area. So, a Triangle-based broker will help local business owners get the best and most realistic asking price on the table. Small business owners benefit from this approach with the help of a broker, as they get an inside look at what other companies like theirs have sold for.
  • Earnings-Based: Combining this approach with the others mentioned will provide a realistic, comprehensive valuation of the business being sold. Looking at the business’s earnings includes many financial figures such as debt, cash flows, total revenues, and projected figures for the future.

Selling a business may seem like a complicated endeavor for any Raleigh business owner. However, utilizing the services of a seasoned business broker with VR Business Brokers can help ensure the process is seamless, resulting in the best chance of a successful sale and peace of mind for the owner. Contact us today to put our business experience to good use!

Advertisements