There are
many ways to price a business. The most appropriate way to
price a business is to employ a justification for purchase price
test. This method provides the buyer and seller an objective
standard to determine the reasonableness of the suggested purchase
price. In short, if the buyer can receive a fair return on
investment for the amount paid as a down payment, then the business
is priced fairly.
Business owners should employ
professionals to assist in the valuation of their business. No
one knows more about a business than the owner. Bonzer
Business Inc's brokers are trained to assist
business owners with “recasting” the financial statements of the
business. This “recasting” is critical to uncovering hidden
expenses that cover up the true economic performance of the
business.
Through professional associations
with third party independent Valuation firms we will determine fair
market value for the business.
The “Fair
Market Value” considers the true economic value of the assets.
There are a number of ways to arrive at the true economic value and
most professionals employ several techniques. “Fair Market
Value” also considers the fact that some assets generate income for
the business. Therefore, “Fair Market Value” is what buyers
consider, what banks lend on and what sellers can expect to be paid
for. |