The optimal sale price for a business reflects all of the components that helped the business secure its marketplace position. In Step 3 of the Five Steps to Selling Your Business, co-authored by Tampa Bay Managing Director, Dave Enick, the significance of identifying physical, financial and intangible assets and putting an objective purchase price on them is discussed
Valuing a business can take many forms, and management will need to carefully consider which approach to select. A typical business valuation uses discounted future cash flows as the basis of its estimation. Determining which formula works best for a business and protecting value early in the process is critical to the success of a transaction.
Many factors are taken into consideration when determining the ultimate purchase price for an operation. Additionally, time at the end of the valuation process needs to be spent to evaluate how the price point for a business matches up to objectives for the sale. The value determined might indicate a need to readjust priorities for the timing or type of sale.
For more information about the five step process and valuing your business objectively, contact Dave Enick at email@example.com or 727.572.1400.