Business is more than the numbers, It's YOUR Lifestyle!

The only way to know the value of your business is to know your business - in total!

A business valuation is more then just the numbers. It is a complete overview of the strengths and weaknesses of your business as it exists today, and the opportunities and threats that the business faces in the future. With this information, action plans can be put in place to emphasize the strengths of the business and to minimize the risks.

Many of the factors that help determine the value of a business are actually external to the business itself. In other words, the business owner may have little control over them. It is vitally important to understand these factors too, so that the business owner can at least try to minimize any negative effects they may have on the value of the business.

And, when you emphasize the strengths and minimize the risks of your business, you maximize the value of the business!

The transfer of a business is fundamentally based on 2 aspects - business value and discussed above, and deal structure. With the business value knowledge, the business owner can then consider deal structure.

Understanding deal structure and designing it to optimize your business sale is key to the successful transition of the business. And the only way to do this is to start out with a valid understanding of the value of your business.

Finally, it should be noted that the value of a business may not be the price someone is willing to pay for the business! A fundamental tenet of business valuation is that price and value are two different concepts. The price someone may be willing to pay may be higher or lower then the indicated value due to the buyers unique situation. Strategic buyers have different motivations then financial buyers, and these may be different then the motivations of individual buyers. Business owner lifestyle and business brand strength (reputation in the community) among other things, come in to play here.

How Much Is YOUR Business Really Worth?


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