If you're the owner of the business you Job Function Email List may have an opinion about what the assets are worth but that opinion will not be acceptable to a genuine buyer. The best approach Job Function Email List is to have a third party perform the appraisal for you. There are a number of reasons to use a third party appraisal and these include that Job Function Email List it provides confidence about the value of the business and the asking price.
It provides an informed opinion about the business value Job Function Email List so the seller can decide if the asking price will be Job Function Email List enough for them to sell the business. Most sellers think their business is worth more so the valuation keeps Job Function Email List the seller real with his price expectations and hopefully won't take the business to market if they are not going to get a price that works Job Function Email List for them. A business valuation also helps the seller Job Function Email List see the business strength and weaknesses from a third party's perspective and understand their tax situation.
That is, the price the seller gets when Job Function Email List he closes escrow doesn't mean they get to put all that money in their pocket. The IRS wants their tax piece from the business sale and the business valuation helps informs the seller. Another two reasons for a business valuation Job Function Email List is that it puts one less strain on the transaction. There are often many deal points between the buyer and seller in a transaction. The more deal points and the more tension in the transaction the greater the chances it will not close escrow. As price is normally one of the Job Function Email List biggest items, having a reasonable purchase price eliminates any tension and allows the focus to move to the terms and conditions of the sale.