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One of if not the most common questions we are asked is, “What is my business worth?”. Developing a clear answer to this question and thereby establishing common expectations is a first step in many of our “sell-side” engagements.

Many issues will affect the value of a business being offered for sale. These issues include, but are not limited to, general economic conditions, interest rates, the availability of financing for prospective buyers, the historical and projected financial performance of the business, the breadth and depth of the business’ management team, the business’ level of customer concentration, the existence of any contingent liabilities such as law suits, the business owners willingness to assist in the transition of ownership and potentially sign a non-compete and the business owners’ timeline for selling the business.

While many middle market companies are not taken to market with a set asking price (prospective buyers are asked to submit bids), it is important to develop expectations of what the business will sell for as this may affect the business owners’ decision to offer the business for sale and the business owners’ ability to evaluate other potential scenarios such as recapitalizing the company with debt, distributing capital and maintaining ownership in the business.

Please contact us at to learn more about our business valuation services. We will be glad to discuss the various valuation service options available to business owners who are contemplating selling their businesses.