This question is asked over and over again by sellers who try to do it themselves. No mater how much you think your business is worth, it is only as valuable as the amount someone will pay for it! We call this the reality of the market.
Simply put...in almost all cases where there is no sale, it is because the business is over priced.
Just like houses, the value of a business can go up and down but unlike houses, the value can go up and down mostly because you are making more or less money.
Buyers are buying your ability to make a profit. No amount of potential of your business is going to looked at by a buyer as something they are will to pay for! Most sellers try their best to convince the buyer that there is a value in the potential of the business but the buyers will only see this as a plus and most likely will place little value on your "potential."
Be realistic when pricing your business and if you are not really sure what you are doing, please call us at Pacific Rim Business Consultants, we are ready and able to find the right price to sell your business. Please read our information on valuation at www.pacificrimbusinessconsultants.com. You will get some great insight into how to handle this very important decision.
