Valuation Appraisal Business Sale

5. Obtain a professional, unbiased, comprehensive Business Valuation that will justify and support the price of your company. An accredited valuation will account for the business’ strengths and weaknesses and provide confidence to both Buyer and Seller. A professional Business Valuation represents the price that an Owner can reasonably expect to obtain.
   
   An accredited professional should complete the Business Valuation using recast financial statements. This will require you to provide extensive information and interact with the valuator to substantiate the recast financial adjustments and to communicate the uniqueness of your business.
   
   Finalize the offering price and corresponding terms that you will use to present the business to the market. (Reference #4)
   
   The important issue is to be able to substantiate the economics of the asking price to the Buyer in a complete and thorough manner.



6. Plan for the level of confidentiality needed in the selling process. If customers, employees or suppliers learn that your company is for sale it can have consequences that could lower the business value. Be private in your efforts to prepare your business for sale.
   
   
7. Obtain or develop a specialized company presentation to position the business for sale and present it in the best light possible. This document should provide a consistent and effective sales presentation to each prospective Buyer. It will save you considerable time and personal involvement in selling your business.
   
   Accurate, well-documented information presented to tell your company’s story is important to prospective Buyers. The formal presentation of your business is a way of setting your company apart and ahead of the others for sale.
   
   The company presentation and a formal business valuation are combined into an offering package for the business. An offering package that justifies the valuation and presents the company information in a complete, organized and explanative manner is the most important tool in selling your business for the most money.
   
   
8. Prepare a Sales Prospectus (SP) for the business. This document gives a brief recap of financial and business information, usually no more than two pages. A key feature of the SP is that it does not identify the company.
   
   The SP should be used in the first contact with a prospective Buyer. It would be used to solicit Buyer interest with a minimum of disclosure.
   
   

(Valuation Appraisal Business Sale)
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The Process Of Selling A Business