Warning: Beware of Slick “Consultants” charging huge fees to meet your valuation expectation!

There are several companies that tour the country setting up Business Value seminars or Grow Your Business seminars, or some variation of those. They are good at pumping up the audience, promising to increase the value of a business, guaranteeing at least one buyer at a high valuation price, and pressuring to sign a contract immediately. If it sounds too good…

The problem is that they just tell the business owner what the owner wants to hear and charge large upfront fees (tens of thousands) for a relatively simple market valuation. These companies have no intention of really helping or advising these business owners properly. The upfront fees that the slick operators charge are based on business size, valuation expectations, and of course how much cash a business has in its bank account.

Legitimate valuation services can be found at reasonable prices by qualified and certified individuals in your area. Depending on the use of the valuation (market price, bank loan, divorce, partnership dispute, buy/sell agreements, tax planning), the cost is normally between $3,000 and $8,000. The higher fees will take into consideration the extra analysis the valuation company must perform to meet IRS guidelines or legal requirements for special situations.
There are so many respected professionals and businesses holding free seminars. Don’t get caught signing a $25,000 commitment to find out you have a business that is worth exactly what you thought it should (big bucks of course). Get some free and honest advice from your Apex Business Advisor. With a clear understanding of what you have, you can make intelligent planning decisions.