Join Naomi Simson for an in-depth discussion in this video Determining the value of your business, part of Selling Your Small Business.
- The challenge that you're gonna face is…you may well think that your business…is worth more than the purchaser,…and getting the valuation right and understanding…how you're valuing your business is really important.…Sitting on Shark Tank in Australia, we see hundreds…and hundreds of pictures, and when people come on,…the valuations are always impossible,…and when we ask them the question,…"How did you value the business?"…It's almost like, "I plucked this number out of thin air."…Not good enough, so literally they think,…"Oh, well, how many customers are buying?"…And they say, "Well, none."…So they've got no income, and then they say,…"Well, but the population is 25 million,…if I just sell one percent of that,…then all of a sudden it's this size business."…That is not a valuation model.…
What purchasers are looking for is they're looking for…past performance and confirmed future orders.…They wanna have a comfort that what you did in the past…is not dependent on you or specific things…that might be lost, assets.…
- Explain how to make your business marketable.
- Determine the value of your business.
- Identify and select the right buyer.
- Build a transaction team.
- Describe how to prepare your financials.
- Finalize a contract.