ESTABLISHING THE RIGHT ASKING PRICE
FOR YOUR BUSINESS WHEN SELLING
Meet with an FNBC Agent at our office, your office or anywhere the two of you can meet confidentially
After a review of your business financials, you will have an accurate fair market value of your business
There are several schools of thought available for a business owner and
his broker to consider when establishing the initial asking price for the
business. And there are a number of factors involved in deciding how
aggressively to set that price. In the case of an impending divorce or
severe financial stress it makes perfect sense to go low, be aggressive with
the price-let potential buyers know that you are serious and mean
business. We aren't fooling around.
An opposite view might be to start high, expecting and anticipating that
buyers will want to negotiate for a better deal. Like buying a car, this
philosophy definitely can hold some truth in many cases.
Perhaps the best approach is to be moderately optimistic. By that we
mean to give buyers an opportunity to suggest a slightly lower offer than
the asking price but yet not start so high as to lose credibility from the
outset of the process.
If your broker's evaluation suggests a likely selling price of $500,000, there is no need to start at $750,000. You will be wasting valuable time and running off your most likely purchasers. There is a saying in business brokerage that "first buyers are best buyers". This can definitely be true.
Maybe more so if you are in a niche business, the kind of which serious buyers are combing the internet daily to uncover.
Bottom line: know what your business is worth, make sure that lenders will support that asking price when serious buyers surface, and price accordingly. Use your broker's expertise and methodology to help you set a price that will get the job done.
Establishing The Right Asking Price For
Your Business When Selling