Wished-For-Pricing

When selling your house, would you research the market, check neighborhood listings on the MLS, verify that your Realtor is educated on the marketplace, then analyze all of this information to determine an asking price? Or would you just list your home at the Wished-for-Price?

When selling a car, would you check want ads and online to compare your vehicle to others on the market to determine a price that makes sense? Or would you just put a For Sale sign on your car and list it on Craig’s List at a Want-to-Have price?

I’ll bet that you would put some research and effort into selling either your house or car, perhaps even seeking the advice of a professional to ensure that you are neither leaving money on the table nor pricing too high to create interest. Why, then, would you not want to do the same when pricing your business? It is probably the largest asset of your portfolio, so you do not want to make it guesswork!

I recently sold a business for about 15% more than what the seller expected because an independent appraisal determined and substantiated a higher enterprise value. Both the buyer and the bank were able to confirm the financial history and were comfortable proceeding with the transaction. This is just one of many such examples.

Too many people have the impression that an independent business appraisal is an expensive and painful process.  It is not.  The basic process requires the business owner to complete a questionnaire and supply three years’ tax returns.

Your Apex advisor will assist you to ensure that the information is accurate, complete, and presents the business in the best possible light. If you want to make sure that you receive full value for your business, see our Business Valuation page.

Doug Hubler
President