Business Valuations

Getting the right price for your business involves many factors, including starting with the correct valuation from the beginning of the sale cycle.  If you start out with an asking price that is too low, the business owner will not receive as much as they should get for their business. If you price the business too high, valuable time and prospects will be lost while the “market” determines what the actual price should be.  

Many times an interested buyer will make an offer that is lower or different than the price and terms asked by the seller. They will base their offer on their own valuation formula or a “rule of thumb” given to them by their accountant or friend. Without an independent third-party valuation report, a business owner should be prepared for intense negotiations because it will be your opinion of value versus a buyer's opinion. A buyer will place little credibility in the broker’s opinion of value.

There is a big difference in the quality of valuation reports that can be prepared. Many brokers rely on generic valuation software reports that are based on unproven theories. Is the report designed as a marketing tool, or is it something that has to be put in a drawer and not shown to a buyer? Was a true analysis of the business performed? Were factors such as industry trends, age of the business, client base, and other factors that will affect the price taken into consideration? Empire Business Brokers of Philadelphia uses the services of one of the best business valuation specialists in the U.S. to address these factors.

Our valuation report delivers credible valuation conclusions by applying the most advanced and appropriate valuation techniques. Every business is unique. Research is the foundation of valuing a business, which is why our business valuation specialist utilizes the most comprehensive databases of economic and comparable transactions available and spends numerous hours researching historical transactions and conducting detailed financial analysis for every valuation assignment to assure that you receive the most accurate valuation possible.

We have consistently produced higher prices and smoother sales when a professional valuation report is presented as part of the business offering package than similar businesses produced that did not have the benefit of a comprehensive valuation report.