How do You Determine Your Asking Price?
You obviously want to sell your business or commercial property for the highest possible price. You may even have a number in mind. But, how do you determine if that number is reasonable? You may be concerned that:
- If you list your house too high, few buyers, if any, will see it.
- If your price is too low, you could end up leaving thousands of dollars on the table.
Don’t worry. I’m an expert at creating a pricing strategy that will pique the interest of qualified buyers – and set the stage to get you the highest sale price possible. I’m also a specialist in the local market. I know what businesses or commercial properties like yours sell for, and can get yours sold at the high end of that range.
I begin by getting to know your business or commercial property and all its desirable features. Then I make some calculations to determine its Current Market Value. That value is based, in large part, on what similar business or commercial property in the area have sold for recently along with other valuation methods.
Of course, buyers won’t pay for the sentimental value you place on your house. But special features such as hardwood floors, a newly renovated kitchen or bathroom, or a beautiful backyard patio can have an impact on how quickly a property sells and for what price. I’ll help you understand all the factors that go into setting the list price, and ensuring it is just right for the marketplace and your goals.
Curious as to what your house is likely to sell for in today’s market? Please submit the form below or call or email me for a no-obligation Personal Consultation. I’ve got the answers for you.
Perhaps the most important step in our Selling Process is the determination of a realistic and probable selling price
Many businesses have failed to sell due to unrealistic or unsupportable asking prices
Recognizing the importance of a proper valuation and realistic selling price, we expend significant resources to develop a well thought out and supportable Opinion of Value for our Clients businesses. As such, we believe that it is pivotal to educate our Clients and agree upon the value range early in the process.
During the initial analysis and throughout the valuation exercise, we employ Valuation “Best Practices” to develop a customized Opinion of Value. From a practical standpoint, we are conducting a complete review of all aspects of the business, including its financial position, competitive landscape and the value proposition for potential buyers. Thereafter, we are able to develop the complete financial picture, identify key drivers of value and integrate this newly developed insight with the most up to date industry information and market intelligence.
Our process begins with a thorough review of all financial records and a follow-up consultation to understand various revenue and expense factors that influence these numbers
Typically, three to five years of financial statements and tax returns will be required
At this point, our team will seek to acquire a deeper understanding of the financial history of the business and the potential adjustments that will be required to establish the economic benefits of the business. Based on results of our analysis, we perform a recast or normalization of the Financial Statements in preparation for the completion of valuation process. Multiple valuation methodologies are then utilized and the results of our computations are coalesced as we formulate a fair market value.
The culmination of these efforts is the establishment of a projected selling range and most probable market value of the business. However, our work is not complete. As we proceed through our Selling Process, we will regularly present, explain and support the value so that Buyer’s and Lender’s alike can feel comfortable with the value proposition and potential of the business going forward.