Business Evaluations

Having a properly documented business valuation is the most essential tool to successfully sell or buy a business.  It is essential that the seller have prepared, from existing financial statements and tax returns, a professional evaluation by an impendent third party of the market value of the business. 

It is critical that this valuation be based upon real historic data and not projections for the future.  A purchaser should only pay for what exists and not what might be as what the purchaser can do with the business in the future is up to the purchaser and dependent upon the purchaser’s effort and is not something that the purchaser should have to pay for in advance. 

We have a number of sources available for good business appraisals and can help the seller secure a properly written, properly reasoned evaluation, an invaluable sales tool.

The purchaser, of course, is free to have their own evaluation conducted, but if the seller’s evaluation is done properly in and in accordance with these principles, that should be unnecessary.