img
800.831.6030

business valuation

Demystifying Business Valuation: What You Need to Know

Business valuation is a meticulous process undertaken by seasoned industry professionals. It entails a comprehensive assessment of several critical factors, such as risk, projected future revenues, and market dynamics. Ultimately, the value is determined by what a willing buyer in the current market would pay for the business. Precision in business valuation is paramount, as miscalculations can lead to costly consequences. Our adept brokers employ well-established methodologies to accurately assess a business's value, ensuring that its true worth is faithfully represented. This comprehensive valuation process incorporates rigorous due diligence and takes into account a multitude of variables, including market trends, intangible assets, EBITDA, business dimensions, financial obligations, liquidity, and various other pertinent factors.

Transparency is a cornerstone of our approach, and thoroughness is imperative when conducting a business valuation. While sellers often harbor commendable intentions, it is essential to ensure that their expectations align with the realistic value of their business. Our experienced UA business brokers possess extensive expertise in this field, adeptly calculating the precise value of a business. It is paramount to avoid inflating the value, as it can have detrimental long-term consequences for all parties involved. At UA, we uphold our commitment to integrity, serving as trusted experts in this domain. Our objective stance allows us to guide business owners in acquiring accurate insights into the true value of their enterprise.

What if my business is not valued correctly?

Several things can happen if your business valuation is not done properly.
This includes:

  • Frustrating Buyers

    As part of a buyer’s due diligence process, they will find out what your business is really worth based on their own research and the information you provided. If the calculations are not matching up, this can frustrate the Buyer and cause them to back out of any potential deal.

  • Slowing Down the Process

    If the Buyer happens to still be interested in the deal, even though the calculations are off and they are willing to work with you to make the proper adjustments, this can bring the process to a screeching halt. That’s not something you will want to happen as you want the process to go as smoothly as possible during this transaction.

  • Rejected Financing

    Depending on how the Buyer plans to fund this transaction, a poor valuation could result in them getting denied for funding, and you not getting that sale.

  • Repelling Other Buyers

    By not listing your business at its appropriate value, you could easily scare off experienced Buyers. They can often easily identify when a business is grossly overpriced.

Turn to Unity Acquisitions for an accurate business valuation, ensuring you steer clear of potential conflicts. Our team comprises experts well-versed in both buying and selling processes, offering you the adept professional counsel you require. If you are seeking to attain your business valuation through us, feel free to contact us to set up a consult with one of our team members or click here to start your business valuation process.

connect with us