28 must-dos in determining the fair market price of a small business

Posted by SamuelMo under Startups
From https://www.linkedin.com 3431 days ago
Made Hot by: mikehartman1 on June 28, 2015 10:41 am

When you wish to buy a business you need to do a valuation of the same in order to arrive at a monetary value that you'll compare against the seller's price during negotiations. This monetary value is referred to as the fair market price. Here's how you determine it...

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Written by AngelBiz
3427 days ago

Excellent article and very detailed list indeed. In my experience buying or selling a business is a long and cumbersome process. The list of actions you have provided gives and excellent framework to work with and drive the sale to completion.

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Written by SamuelMo
3427 days ago

Hi Harry, Thanks for the compliments. I agree; these are very involving processes seeing as there's so much to consider. I indeed hope that this framework will help prospective business buyers to further learn about what each of the 28 steps involve.

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Written by lyceum
3428 days ago

Samuel: You are welcome! :) I have to go through your long list again and come back to you! ;) In a philosophical meaning, the price for a small business will always be fair in the true sense. It is a matter of supply and demand.

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Written by lyceum
3429 days ago

Samuel: Welcome to BizSugar! Which elements are the most important of the 28, do you think?

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Written by SamuelMo
3428 days ago

Hi Martin. Thanks for the welcome, vote and comment. Well, no.5 about consulting a broker, accountant and attorney is absolutely vital. They'll be your 'CSI' team - they know what to look for. Next, no.7-14, i.e. everything that the accountant will do; this will basically determine the fair market price. Next, no.15-22, where the entrepreneur's business savvy will help to create an informed opinion about the business in question, and consequently help to guide operations after the business is acquired. That's how I see it...what about you?

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