Should I Put a Price on My Business?
We are quite often get asked about pricing a business and whether it is important to put a price on a business or just ask for offers.
After all this works in real estate so why not in business sales? Well in real estate, the price is roughly dictated by the suburb, the size of the land, number of bedrooms and the quality of the fit-out and most importantly recent similar sales.
How many businesses have sold with a published price near your business recently that are similar to your business from an industry revenue and earnings perspective? Probably none!
So there are no comparables, therefore to guide potential buyers you have to provide a price.
If you do not provide a price, buyers who are searching between $20,000 and $20 million will not know whether to enquire and statistically they just will not bother. So do yourself a favour, put a price on it. Let the buyers know what you would negotiate around and do not try to avoid the subject.
If you would like a free appraisal of your business, give us a call.