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How to Sell Business - Printable Version

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How to Sell Business - cramerjohn004 - 10-23-2020

What's also most interesting about accountants is that they tend to favor using the book value of your business for sale as a starting point and not the market value. Big big mistake. You'll leave a ton on the table this way. Don't do it!

They take the number off their balance sheet and say that's what their company is worth - You balance sheet tells you the hard value of the assets you have, that's it! It doesn't take into consideration what the value of your assets are that have already been depreciated or your blue sky value, or good name, or customer base..........all things that can add tremendously to the bottom line value of your business!

They read a few articles in INC magazine and guess a number (even saying something like "companies in my industry are selling for 3 Times earnings") They may even refer to their latest tax return for a number - Don't be fooled by this! There are so many variables even with similar businesses in the same industry. The true value of your business is NOT the same as the guy down the street, even if you do the same thing!