Business valuation should be considered a starting point for buyers and sellers. The more informed the parties in a transaction are, the better the likelihood of a good deal. Of course, each party has different motivations, but fair market value is the price a seller will accept and a buyer will pay. Only the right buyer will pay the right price.
Selling a business is far different from selling a house or other tangible asset where there exists comparable sales information sufficient to support a value. Unlike real estate, it is not unusual for 50% or more of an operating business’s value to be based on intangible assets such as goodwill, intellectual property, licenses, location, etc. Business valuation is a complex process. Part art and part science, it relies on elaborate business metrics and intangible factors that only come with experience. At George & Company we have that experience – and we can put it to work for you.