Have you found a business to buy but don't know what to pay for it?
This is common with business purchases and often leads to a standstill in a successful deal closure. Neither party, buyer or seller, is aware of the fair market price but both are positioned to motivate the price in different directions, for obvious reasons.
Bridgepoint can help you determine what the business of your dreams is worth. We can prepare a detailed valuation report using the company's financial data to arrive at a Broker's Opinion of Most Probable Selling price. This information will give you the confidence you need to ensure you are making an informed business decision.
Here is what we can do to help answer your question -"What should I pay for this business?"
Prepare a detailed valuation report titled "Broker's Opinion of the Most Probable Selling Price", that:
- Uses the Company's financial data for the past 3 - 5 years, land & building values/lease costs, owner salary draws, fixed assets, inventory, etc.
- Takes into account both asset values and earnings,
- Helps our client understand both the potential of the business and the risks of ownership.
This information can:
- Highlight opportunities or risks with a business,
- Shed light on areas of the business that need additional due diligence,
- Clearly aid you with making a decision to move ahead with the opportunity or to continue looking for another business that is a better fit.
If the report results are aligned with your goals, you may decide to proceed with purchasing the business. Bridgepoint can continue to represent you and guide you through to closure as we have experience in successfully closing deals. A lot of people are unaware of the numerous steps and pitfalls involved in a business purchase - particularly those between an Offer to Purchase and Closing the Deal.
Here are some of the areas that we can assist with to ensure the transaction goes smoothly:
- Manage the due diligence process - this is the buyer's responsibility and it is important to get the right information from the seller to ensure an informed decision is being made.
- Assist with financing, if necessary - collect and compile the information that banks need, present it as a compelling story, manage process to meet timelines of offer.
- Negotiations - as with any business sale there is plenty of emotion as sellers are passionate about the masterpiece they have built. It will take a skilled negotiator to have the details of a deal end in your favour.
Please contact me if you have found a business to buy, but need help getting to that next step.