Determining your Little Rock company’s fair market value will ensure you get the best price for it. Figuring out what’s a good price, however, can be challenging. If you overestimate, your Ridgeland business may never sell. Underestimating the value, on the other hand, could force you to take a loss.
This is where it may be time to call in a professional.
What’s Involved in a Business Valuation?
When selling your business, you can’t just slap on a sticker with a price that sounds good to you. There are several different ways you can evaluate your company to determine what it’s worth. You may need to use more than one method to cover all of your bases.
Some ways to determine your business’s market value include:
- Adding up your business’s assets and subtracting debts and liabilities
- Calculating your business’s future cash flow potential
- Basing the market price on your company’s annual revenue
There are a lot of factors to consider when calculating your company’s value. Some of those elements are very hard to put a price tag on.
Business brokers like Strategic M&A with years of experience in valuing and marketing companies know what intangible assets are worth and how to calculate financial potential.
Need a Professional Business Valuation?
At Strategic M&A Advisors, we can help you set the right price for your business. We’ll work with you to conduct a market value study to determine what your company is really worth. This will give you the vital information you need to make the right decision about selling your business.
Call Strategic M&A Advisors today to schedule a complimentary consultation at either our Arkansas or Mississippi office.
Posted on behalf of Strategic M&A Advisors