For any business owner, maximizing the income obtained by selling a business in Las Vegas is always an important consideration. However, timing the sale of a business to match the markets is more challenging than timing a home sale for several different reasons.
The first step that any owner wanting to sell a business needs to take is to get an idea of the price they can expect for their company. It is important to realize that this value will often be very different than what the business owner thinks that the business is worth.
Real Value vs. Perceived Value
A business owner has spent countless long hours building up their business. This is true if they were the startup owner or if they purchased a business and expanded their product lines and customer base.
The biggest mistake that most business owners make when they try to sell a business is to assume that there is a dollar for dollar increase in the business based on the amount of time and money they have put into upgrades, renovations or expansions.
Several factors will come into play in the real value of the company. This includes the assets, the customer base and the revenue of the company minus the expenses. Through a quick analysis, a business owner can get a ballpark figure for the sale and then a valuation can provide a very specific value.
Without this information, determining if this is a good time to sell a business is a guess. With the valutation completed after obtaining a rough estimate, you will have more specific and detailed information on a reasonable and fair asking price.
Markets
It is also important to realize that selling a business is not the same as selling a home. While there are market peaks and valleys, they are not as pronounced or as volatile as the housing market.
A business sale is also a completely different process. While you can often put a home on the market in just days, most business brokers will need to work with the business owner for weeks or months to get the business into the best possible position for the sale.
Ideally, for any business owner in Las Vegas, talking to a business broker and having a valuation completed months before you are interested in making a sale is the best option. This gives you time to make improvements, ensure the finances are in order and have your business ready for review by qualified potential buyers.
