Do I Need a Third-Party Business Valuation?

Your business may be your most valuable asset, so it is important that you develop a proper understanding of its worth. This is especially true if you are planning to sell it. Sunbelt of Nashville can offer business owners a general idea (using traditional pricing guidelines) about what their existing business might be worth for selling and listing purposes, but there are times when having a more formal business appraisal performed by a professional appraiser is more appropriate and prudent. We take the responsibility of helping you determine an appropriate value and asking price very seriously!   For that reason, the valuation process is a true asset to the business owner and a thorough, professionally prepared valuation will assist him or her in:

  • Helping identify the key value drivers, major strengths, and more importantly, the major weaknesses of a company allowing the owner to solve both obvious and hidden   problems prior to selling a business. 
  • Determining a reasonable selling price. Many owners rely on general rules of thumb, casual advice from friends or other similarly unreliable sources. Values determined by general multiples or rules of thumb may be too high or too low. If the owner's expectation of value is too high, it will prolong the selling process until a price concession is made. If the price is too low, money is left on the table. Unless the business owner goes through the valuation process, he or she just will not know if the business is priced at market value. 
  • Fully understanding the value of the business will assist during negotiations. In this market, one can expect buyers to be sophisticated and experienced. They will conduct a rigorous analysis of the company, even if the seller has not. They will look at those factors and value drivers that the owner and his advisors should consider in valuing the company, and they will use that information against the seller in negotiations. 
  • Sell the business faster – The International Business Brokers Association (IBBA) has indicated that businesses sell 35% faster when an investment is made in a business valuation.

Sunbelt recommends the services of a reputable, independent, third-party valuation companies, such as GCF Valuation, a full service valuation firm providing business intermediaries, banks, consultants, attorneys and their respective clients with business valuation services.. GCF Valuations delivers credible valuation conclusions by applying the most advanced and appropriate valuation techniques.

Every business is unique. They believe that research is the foundation of valuing a business, which is why they invest in (and develop) the most comprehensive databases of economic and comparable transactions available. GCF's analysts spend numerous hours researching historical transactions, reviewing court cases and conducting detailed financial analysis for every valuation assignment to assure that they provide the most accurate valuation possible.

Contact your Sunbelt Agent for more information on GCF Valuations.