What’s it Worth?

What is your business worth in today’s economy? Have you ever heard, “Everything I have is for sale for the right price?” Maybe you’ve said it, but do you actually know what the right price is? Many business owners we talk to have an unrealistic view of the value of their business and are caught off guard when the time comes to start thinking about selling.

There are times in the life cycle of every business when it’s helpful to have a realistic view of the value of the business. For example, what if a buyer shows up unexpectedly and is interested in acquiring your business? Or if a tragedy or illness occurs and you can’t continue to run it. The last thing you need during times like these is to be blindsided by the realization that your business isn’t worth as much as you thought it was. On the other hand, what if you sell your business and then discover that you left a lot of money on the table, but now it is too late to go back and ask for more?

One of the most common scenarios we see at REP is a business owner who is ready to retire but realizes that he or she doesn’t have a succession plan. At this point, they’re often tired and don’t have it in them to stick it out much longer. They’re ready to move on, and they’re ready right now, but the business isn’t ready.

Having a realistic view of your business is important so that when these times do come, you have all the information you need to make an informed decision. When the random opportunity to be acquired happens, you know where you can negotiate from. When the time to sell is forced upon you, you’ll know where you stand regarding the value of your business. And if necessary, you’ll know if you need to make adjustments to increase the value.

One song writer says it this way, “When you stay ready, you don’t have to get ready.” At Resolution Equity Partners we can help you get a clear understanding of your current value in today’s market. We can also help you learn how to increase the value of your company if the current value isn’t what you wish it was. Contact us today to schedule a confidential meeting to discuss how we might be able to help you stay ready.