Sale of a Business
In the case of a sale to an outside party, proper knowledge of a realistic
valuation for the business is essential before the search for a buyer is launched.
Serious damage can result when a business is marketed for sale and the owner has an
unrealistically high expectation of an appropriate sales price. Once the word that the
company is for sale reaches the street, many harmful things can occur such as employee
abandonment, insider theft, and reduced production. If the business does not sell because
of an impractical estimation of the worth, the company may be left with a depleted, poorly
producing organization. In addition, a business valuator will reflect the various
intangibles and other correct values. Otherwise, purchasers may just look at the financial
statement and think that is all the business is worth.
© Copyright 2002 by Delbert W. Exeter. All rights
reserved.
This web page was last updated on March 01, 2002.
_
