When you stop and consider all of the different factors that lead to the success of selling a business, no one single aspect is more important than the price. You have probably heard the old saying “you make your money in real estate when you buy.” Well, a similar statement can be made about successfully selling your business …

“The success of selling your business is determined when you price it.”

I believe there are three ways to price a business – unfortunately two of them are disastrous for the seller. Price the business too high, and buyers will steer away from the listing. Price the business too low, and you don’t get the full value you deserve. But if a value for your company can be generated using proven methods and applicable research, then the ultimate of goal of pricing the business fairly and correctly can be achieved.

So how do you generate this value? If I was guessing, I would say that you have probably heard of ways to value your business – from a CPA, another business owner or from a book or website. Although some of these “tips” may be relevant, a true professional opinion of value is the only way to give yourself the piece of mind that your business has been valued correctly.

The Huntington Professional Business Valuation is a tool that combines the most relevant valuation models used today, along with industry research and business analysis, to produce a fair market value for your company. We don’t just consider one valuation technique – we utilize several ways of looking at your business and evaluate which carry the most weight.

This valuation is an invaluable tool for all parties involved in a transaction – we are able to determine the marketability of your business, you are able to determine if this is the right time to sell based on understanding how your business is priced, and buyers enjoy the confidence of knowing the price they are considering has a substantial amount of research and analysis backing it up.

Don’t leave such an important aspect of selling your business to chance. When it comes to establishing your asking price, make sure you have the analysis and methodology behind the value to support it. In the end, this type of diligent attention paid to your valuation will pay off in a faster, smoother and less-frustrating transaction.

Jeremy Furtick is a Senior Business Intermediary with Huntington Business Group Inc. a VR Business Sales firm in Dallas (www.vrbigd.com).

VR Huntington Business Group, located in the heart of the DFW Metroplex, serves the entire Dallas-Fort Worth Metro area as well as North Texas. The company specializes in Business Brokerage, Mergers & Acquisitions, Business Valuation and Consulting services focusing on small businesses and mid-market companies.