Whether you’re an entrepreneur looking to acquire your first venture or a business owner preparing to sell, navigating the business valuation process requires careful preparation. Business Valuation is a process used to assess the economic value of a business. Valuations are used in many business activities, including exploring new ownership models.
Within the next 10-15 years, 12 million businesses will be sold. Owners seeking to ensure the continuity of their enterprise may engage in succession planning. Alternatively, owners looking to collect the full value of their appraisal should take vital transitional steps in planning their exit through valuing their business. No matter which side of the transaction you are on, understanding the complexities involved in buying or selling a business is essential to achieving a successful outcome, and reaping the desired financial results.
View our related small business guides here: Succession Planning, Employee Ownership, Finance, Tax & Accounting
You can also receive free professional business advice and free or low-cost training from your local Small Business Development Center!
Business Valuation: Buying a Business
Taking on a new venture can be both thrilling yet filled with daunting tasks. Whether you’re a first-time entrepreneur or wanting to expand your business portfolio, understanding the intricacies of buying a business is essential to your success. Exploring the key steps and insights to effectively buy a business will help you make informed decisions and maximize your potential for growth and opportunity.
How to Buy a Business
- Finding New Businesses for Sale – how to find the right firm to invest in
- Find Businesses for Sale Online – listing of websites
- How to Buy an Existing Business or Franchise – guide on factors to consider
- Valuing a Business – exploring financial steps involved in valuing a business
- Legal Considerations for Buying a Business – finding lawyers and questions to ask as a buyer
- How to Use a Letter of Intent – to seal an agreement
- Key Questions to Ask Sellers – before purchasing
Tips and Best Practices
- U.S. Small Business Administration – key considerations on buying or franchising a business
- Before Buying a Business – key consideration to prepare yourself
- Due Diligence Checklist – general list for business valuations
- Before Entering a New Business Market – factors to research
Business Valuation: Selling a Business
As an entrepreneur, a crucial aspect of owning your business is establishing an exit strategy. There are many effective ways to close a business once it matures, including selling the business. Selling a business is the process of transferring ownership and control of a company from one party to another. This involves a structured approach to evaluating the business’s worth, attracting potential buyers, negotiating terms and much more. While it can be difficult to put a price on years of hard work, it is important to separate feelings from facts in order to be successful in the transaction. Calculating business valuation can help assure owners that the selling price for their business reflects its value.
How to Sell Your Business
- How to Sell a Business – BizBuySell Learning Center
- How To Sell Your Business and Make a Successful Exit – guide exploring necessary steps
- How and Where to Find Someone to Buy Your Business – resources to help locate potential buyers
- Calculate the Selling Price – methods for pricing
- Calculate the Selling Price of a Business – how to set a price by evaluating its value
- Contract Negotiation – Tips and skills
- Closing a Deal – how to close and steps to follow
Tips & Best Practices
- Preparing Your Business for Sale – steps that will help prepare you to put your business up for sale
- Selling a Business Checklist – items to consider when preparing your business for sale
- Business Plan – how to include your exit strategy in your business plan
- Things to Know When Selling Your Small Business – guidance on key things to remember when selling a business
- Mistakes owners make when selling their business – common mistakes to avoid when selling your small business
Conducting Business Valuations
Valuation is a crucial step in confirming the accuracy, effectiveness and suitability of a business. The purpose of a business valuation is to assess if a business has achieved the intended requirements and standards in its field. Overall, a careful valuation is the essential tool in determining a firm’s true and total worth.
- Business Valuation Methods – determining worth
- Steps to Valuing a Business – breakdown of business valuation methods and when to use them properly
- How to Make the Most of Your Business Valuation – guide to different business valuation approaches and how to maximize its value
- Business Valuation Appraisals – resources to get your firm’s valuation appraised and listing of relevant organizations
Additional Resources
Already in business or thinking about starting your own small business? Check out our various small business resources:
- View small business help topics here: Small Business Information Center
- View more business reports here: Small Business Snapshots
- View industry-specific research here: Market Research Links
- View business plans samples here: Sample Business Plans
- View our small business cybersecurity resources here: Cybersecurity
- View our pandemic business resources here: COVID-19 Publications
Remember, you can also receive free professional business advice and free or low-cost business training from your local Small Business Development Center!
Photo credit: Photo by Amina Atar on Unsplash
