Are you a small business owner? Do you own a restaurant, a convenience store, a bookstore, or some other small business? If so, it is important to understand the importance of small business appraisal. A small business appraisal company can determine the current market value for your business.
A small business appraisal is appropriate for many reasons. For example, if a larger company is interested in acquiring your business, an accurate market value can be presented to them by securing a small business appraisal. Another reason is if you are interested in retiring from your business.
Also, a small business appraisal company can give you a solid market value for you to negotiate with. When you know what your small business is worth by way of a small business appraisal, you are in a firm position to do what is necessary for selling your business or handing it over to others, and do so at an attractive price level.
Your Small Business Appraisal might surprise you
In one of the HBVS valuation projects that was completed about a year ago, the owner asked us to call him after we had run the numbers. This client was operating a very healthy, successful distribution business and was intending to transition the business to his son. As soon as our HBVS formula process ended, we called the client. The final business value came to about $2.4MIL. When the client heard the value, he exclaimed loudly… “What … my son doesn’t have that kind of money, I’m going to put it on the market!!”
The lesson here is very obvious but important. Most of the clients we work with are absolute experts in the operation of their respective businesses, but are usually clueless when it comes to placing a market value on their business. And yes, some owners do believe their business is worth in excess of its true market value. But they are few and far between. What the HBVS system does is bring reality into the equation. And the documentation that is provided with every project, allows the final number to be credible and verifiable. So if you are thinking of moving on from your business soon or even “down the road,” please let us know as we are happy to provide sound guidance based on more than three decades of experience.
Easier Than Ever
And finally, getting your professional small business appraisal is easier today than ever before. The Internet allows you to apply online. You’ll be asked about your business, your areas of interest and other information needed to get started. Once you’ve submitted that information you will be contacted with a complete package of material sent by mail.
The Halas Business Valuation Service was founded in 1985. It’s a proven method that has been used to evaluate retail shops, restaurants, and many other small businesses.