Most of the businesses for sale with us are valued on the following;

The amount of money they earn.

The desirability of the industry.

The associated risk factor.

Higher prices will be paid for businesses in more desirable industries that are operating in a market perceived as low risk. These types of businesses are in strong demand. Therefore the value of the business will be greater than for one in a less sought after industry and perceived to have a higher risk factor attached to it, despite the fact that both businesses may make the same amount of money.

Most small owner-operated businesses are valued according to the cash surplus available to the owner. Depending on the industry this will vary. The amount will depend on factors such as the industry, location and length of time in business.

Larger businesses are valued on either a return on investment (ROI) or a price to earnings ratio (PE). Once again this will vary depending on the industry and the amount of net profit generated by the business.

When you have your first meeting with one of our Business Brokers they will give you an overview of values of businesses within the industry sectors of interest to you. an offer, this needs to be in writing and in the correct format. Any verbal offers can become complicated, as they do not detail the terms and conditions of the offer. As part of our service we prepare a Business Sale Agreement, which details the offer being made, and the terms and conditions. We will liaise between both parties in the process of negotiation to facilitate agreement between both parties. In many situations we can recomm

How long is the business marketed for sale?

end solutions to issues that may be of concern to either party. As a business owner you need to ensure you are protected by having the right clauses in the agreement and it is advisable to seek professional advice.