{"id":781,"date":"2020-12-19T17:40:00","date_gmt":"2020-12-19T17:40:00","guid":{"rendered":"https:\/\/www.southardfinancial.com\/?p=781"},"modified":"2020-12-15T17:51:53","modified_gmt":"2020-12-15T17:51:53","slug":"why-you-need-to-be-realistic-about-the-value-of-your-business","status":"publish","type":"post","link":"https:\/\/www.southardfinancial.com\/why-you-need-to-be-realistic-about-the-value-of-your-business\/","title":{"rendered":"Why You Need to Be Realistic About the Value of Your Business"},"content":{"rendered":"\n
Here\u2019s something you don\u2019t usually hear a transaction advisory firm say: sometimes we can\u2019t sell your business!<\/em><\/p>\n\n\n\n It\u2019s not for lack of preparation. At Southard Financial, we go over every client\u2019s business situation with a fine-toothed comb to accurately determine the value range of what their company is worth.<\/p>\n\n\n\n It\u2019s not for lack of experience. In our case, we\u2019ve been at this for over 30 years.<\/p>\n\n\n\n When deals fall apart, it is most often because the seller decides to go to market with expectations of value that are not realistic<\/a>. In their mind, their company is worth one price, but potential buyers think it is worth significantly less. Even when presented with solid market evidence, the seller refuses to budge\u2026and no buyers come to the table\u2014or an interested buyer walks away.<\/p>\n\n\n\n In those instances, we can\u2019t help them sell their company.<\/p>\n\n\n\n A great way to keep from having a transaction fall apart at the end is to establish a realistic value range at the beginning.<\/p>\n\n\n\n When a new client approaches us about helping to sell their business, one of the first things we do is begin looking at their company from every angle.<\/p>\n\n\n\n Essentially, we imagine ourselves as potential buyers in order to see the company through their eyes.<\/p>\n\n\n\n Once we\u2019ve compiled all of this information and more, we create a report for the seller that gives them a bottom line, real-world value estimate of their company as it stands. Then we go a step further and include suggestions for improving its value prior to putting it on the market.<\/p>\n\n\n\n If our value estimate is too low for the owner and they are unwilling to make any financial and operational enhancements, then we probably can\u2019t help them sell it.<\/p>\n\n\n\n If you shop around for companies to represent you as you sell the business you built, make sure you talk to several.<\/p>\n\n\n\n We do the opposite of all those things<\/a>. At Southard Financial, we want to see you<\/em> win. We value hundreds<\/em> of businesses every year (of every type and size), and our valuation experience gives us the know-how to help sellers maximize their value<\/a>.<\/p>\n\n\n\nWhy Deals Die<\/h2>\n\n\n\n\n\n\n\n
How to Avoid a Failed Sale<\/h2>\n\n\n\n
What to Look For<\/h2>\n\n\n\n