Picture yourself as a business owner, you are getting ready to retire or ready to move on and the time is now to begin preparations to sell your business. What do you need to do? How much is your business worth? Who out there can help me? Many business owners experience this situation and the great news is there is help from experts out there. First everything must be confidential. This is crucial, only those that “must know” should learn about plans to sell. Think about it from an executive or employee’s point of view. Their job security or job satisfaction can become extremely altered. There may be a lot of uncertainty and critical executives or employees could leave or have negative impact on business. Lenders could find the business unstable and call a note due or cut off critical capital needed to maintain the current business. Suppliers may get word and relationships could sour. All of these situations can have a negative impact on the value of a business. Furthermore potential buyers will learn of these situations and this will really impact their comfort and confidence. The best thing to do is to make Confidentiality a priority. One of the first steps in preparing to sell a business is to obtain a business valuation. Some business owners believe they know what their business is worth. Often this belief comes from a calculation. There is no one calculation that can determine true market value. It is imperative to get proper representation from experts who are experienced with business valuations. A Neumann and Associates is a premiere New Jersey Business Brokers with over 5000 business valuations under their belt. There are many calculations, market, industry, lending and government factors to consider with a NJ business valuation. Additionally, there are similar sales and value drivers. Items that drive value are diverse customers, suppliers, and products, positive trends, low debt, growing industry, patents, barriers to entry and many more value drivers. They are different for each company and industry. When obtaining a Business Valuation in NJ, it is critical to obtain the valuation from an expert. It must be a certified business valuation and it must be from a third party. If a seller obtains a business valuation in NJ from the party representing them, then it is highly likely the valuation will come in high. That is clearly because the party representing the seller wants the sales price to be high. Same thing occurs with a buyer, there is a conflict of interest and the business valuation is not seen as objective. It must be a certified business valuation from a reputable third party. That is clearly because the party representing the seller wants the sales price to be high. Same thing occurs with a buyer, there is a conflict of interest and the business valuation is not seen as objective. It must be a certified business valuation from a reputable third party. Business valuations not only are the first step in preparing to sell a business. They help set an initial offer price and justify the value. They are used in many situations in addition to a business sale such as divorce, financing, partnership splits, estate planning, etc. A Neumann and Associates has been involved in over 5000 Business valuations in NJ. Their reputation has been built on over 25 years of excellence and industry experience. For more information and to receive a Complimentary Confidential Consultation visit our website.
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