How to value your business

You might have spent years building up your business, but you’ve finally reached the point where you’re ready to sell up. There could be all kinds of reasons why you might choose to sell – ill health, retirement, change of direction…the list is endless. When you do decide the times’s right though, there are a few things you’ll need to consider.

Putting a value on your business

One of the most important decisions you’ll need to make once you’ve committed to selling your business, is how much to sell it for. You need to make sure that the figure you come up with is a true reflection of the value of your business.

Don’t overprice

You’ve poured your heart and soul into building up your business. You’ve worked long days and given it your all, so it’s super tempting to stick a high price on your business. But, you need to be realistic. If you overprice your business, then you’re going to alienate your potential buyers. A realistic price is more likely to bring attention.

Don’t undersell

Under-valuing your business is just as dangerous as over-valuing. Not only will you sell yourself short, you may also actually put off potential buyers. Think about it, if you undervalue, then your potential buyers may question why the business is being sold so cheap. They may worry that there are hidden reasons for the low valuation.

Consider everything

Make sure that you factor all of the fixtures and fittings that will be included in the sale of the business. And make sure that these are clearly listed so that your potential buyers know exactly what they’re going to get for their money.

Putting a value on your business really is one of the most important decisions you’ll make throughout the selling process. So it’s important to get it right first time.

value your business


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