Business Valuation Resources
business valuation resources
Preparing Your small business for a Fast Sale
After years of hard work and dedication to your business, you’ve decided it’s time to let someone else take over the reigns. Although you’re an expert at growing a good idea into a thriving company, do you know how to prepare your business for the sales market? Achieving the goal of a satisfied buyer and a victorious seller can be difficult, but with preparation, evaluation, insight — and maybe just a little luck – it can be done.
First consider if you’re really ready to let go. For many, selling a business that they’ve poured blood, sweat and tears into can be an emotional decision. Although successful business owners will have anticipated and prepared for many of their industry’s ups and downs, they may not feel equipped to handle the eventual sale of the business they’ve fostered. Experts agree that selling a business is not for the faint-hearted. Consider enlisting the help of an attorney or financial expert to help you evaluate if you and your business are ready to part ways.
Timing is everything. Unfortunately, many who decide to sell their business are forced to do so. Physical disability is a common reason for such an exit. According to Smallbusinessreview.com, 25-33% of American small business owners will be forced to leave their business due to a disability. A condition that continues for more than a few months could likely result in a long-term disability of several years or more, which would deal a devastating blow to your company. If you decide to sell, do so – if you can –while you are healthy and business is robust. You want to be in control of the outcome.
Is your business fit? Start with reviewing business records to make sure they are complete, accurate and inclusive. Check customer and supplier contracts to see which ones will be expiring soon. Then consider which business accounts are ineffective or draining on your resources and eliminate them. Once you have everything in order, prepare financial statements and projections that will demonstrate your business’ growth and revenue potential. Financial transparency will assure buyers your business is what you say it is.
Will your business show well to buyers? Successful home sales are largely dependent upon “curb appeal” and businesses are no different. If your brick-and-mortar building or your Internet website needs an update, now is the time to do it. Rusty tools, out-dated equipment, cob webs and peeling paint: they all speak negatively to a buyer. Invest a small amount of money now to ensure a greater selling price later.
Set your asking price – but not before doing your homework. Many sellers tend to over-value their assets, so it might be wise to get your business appraised by a certified business appraiser or valuation analyst. These professionals will consider all tangible assets, including real estate, cash, inventory – even intellectual property, client lists and trademarks.
Now you’re ready to find a buyer. Some business owners start out working independently to market and sell their business. Eventually, most realize they need assistance from a professional service, such as DealBacker.com, a marketplace for buying and selling private businesses and franchises. DealBacker.com currently offers a classified listing of businesses for sale, although there are plans to also include dataroom services, document exchange and business valuation tools. The site allows users to reach a substantial number of potential investors worldwide for a nominal listing fee.
About the Author
I need a resource which shows various valuation “rules of thumb” (i.e., multipliers) for a restaurant.
I am looking to get some quick rules of thumb for the restaurant industry so I can have an idea of whether the business is a good deal. In particular, I am interested in what a typical EBITDA multiplier is for a restaurant.
In looking at their P&L there is one quick way of telling whether the place has continuously made money and will contin ue to do so.
Look at the Gross Profit. This will be your gross revenue minus your raw materials and your “production” labor ( IE cooks, wait staff, busboys, etc)
If that number if not 32% or higher, then you have a business that is selling its goods under priced. I would be happy to review the numbers with you, and I do not charge for this help…..
As for the price of the business, I wouldnt pay more than 3.5 x EBITDA…
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Best Practices for Equity Research Analysts: Essentials for Buy-Side and Sell-Side Analysts $40.52 A real-world guide to becoming a top-performing equity analyst Praise for Best Practices for Equity Research Analysts: “Jim Valentine has taken his decades of experience as a highly successful security analyst and written an effective and comprehensive guide to doing the job right. I only wish I had this book by my side throughout my career.” — Byron R. Wien, Vice Chairman, Black… |
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How to Read a Balance Sheet : The Bottom Line on What You Need to Know about Cash Flow, Assets, Debt, Equity, Profit…and How It all Comes Together $18.95 Crack the code of finance‘s big mystery—the balance sheet In these times of financial anxiety, the ability to keep track of a company‘s finances is more important than ever, and you can‘t do this without a firm grasp of the balance sheet. Whether you‘re a small-business owner, department manager, or individual investor or business student, How to Read a Balance Sheet provides the sk… |
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Financial Management: Core Concepts $25.97 Brooks uses a tools-based approach that presents the key concepts of finance (or “tools”) early on in the text, followed by an application of those concepts to various finance problems. An Overview of Financial Management; Financial Statements; Time Value of Money – Part One; Time Value of Money – Part Two; Interest Rates; Bonds and Bond Valuation; Stocks and Stock Valuat… |
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Business Valuation $67.46 This book is in New – Excellent condition |
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Valuation of Ecological Resources $129.95 This book is in New – Excellent condition |
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The Business of Business Valuation $228.03 This book is in Used condition |
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Business Valuation and Bankruptcy $79.13 No Synopsis Available |
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Business Valuation For Dummies ? $18.31 No Synopsis Available |
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Business Valuation Demystified $18.32 No Synopsis Available |
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Business Valuation And Taxes $158.5 This book is in Used condition |
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Business Valuation Body of Knowledge $179.9 This book is in Used condition |
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Business Valuation Bluebook $18.71 This book is in New – Excellent condition |
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Business Analysis and Valuation $68.7 This book is in New – Excellent condition |
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Accounting and Business Valuation Methods $50.3 This book is in New – Excellent condition |
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Business Valuation Discounts and Premiums $148.69 No Synopsis Available |
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Business Valuation Manager Pro $775.13 No Synopsis Available |
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The Art and Science of Business Valuation $100.38 No Synopsis Available |
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Guide to Business Valuation $30.18 No Synopsis Available |
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Business Valuation Manager Pro Manual $24.38 No Synopsis Available |
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Outlines & Highlights for Business Analysis and Valuation $34.08 No Synopsis Available |
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Handbook of Business Valuation, 2nd Edition $240.83 No Synopsis Available |
