Are you a business owner thinking about selling your business? Do you know the value of your business? Most owners of companies believe that the value of their company consists of the fixed and tangible assets.
For many companies, the largest asset in the company is the intangible asset value. This value may consist of discrete intangible assets in the form of intellectual property (IP), proprietary processes, patents, copyrights, trademarks, brands, etc. Or the value may entail the non-discrete intangible assets in the form of professional or personal goodwill value that is generated by the company’s human capital.
Before listing the business for sale and prior to entering into a letter of intent to sell the business, get a professional business valuation to understand the value drivers that comprise the value of the business and the risk factors that could result in a lower value for the business. This will aid the business owner to better negotiate with potential buyers and have compelling support for the listing price.
Negotiate from a position of strength.
Don’t leaves millions of dollars on the table because you didn’t understand the real value of your business.