Establishing the value of a business is a complex process that requires professional expertise and understanding of your sector. Comparable sales – using the sale values achieved by other businesses that are similar to yours – is one factor that helps to set a market value and justify it to those intending to purchase a business.
The price that similar businesses sell for is an important part of the overall valuation that can lead to a fair market value, but how do you find out how much similar businesses have sold for?
Professional business sales brokers are in the perfect position to provide that information, and can offer expert insight from the beginning to the end of a business sale transaction.
Seeking expert assistance from professional sales brokers
Selling My Business has more than 60 years’ experience of carrying out successful business sales, and can help you determine the price achieved for businesses that are comparable to yours.
Using the knowledge and expertise of our team of professionals allows a reliable value to be placed on your business – one that takes into account how much similar businesses have sold for, as well as the past, present, and potential future performance of yours.
Our in-depth knowledge of the business sales market in general, plus industry-wide experience, enables us to provide support throughout the sales process, removing or considerably reducing the pressures created by a transaction of this significance.
Why find out how much similar businesses sell for?
The valuation and sale price of a business can change depending on, amongst other factors, the industry in which it operates, the current market conditions, its reputation in the market, and the buying position of potential purchasers.
Determining how much similar businesses sell for not only aids the process of arriving at a value that is fair and incorporates these factors, but it can also help you to justify your advertised price to prospective buyers casting doubt on the value.
Potential purchasers commonly wrangle over the value of a business during the negotiation stage, but you can use the information on how much businesses similar to yours have sold for, to demonstrate that the value is reasonable.
So how do you know which businesses are ‘similar?’
What are ‘similar’ businesses in the context of a business sale?
When identifying similar businesses, consideration should be given to a range of factors, including whether they are serving a similar demographic to your business in relation to locality, if the business sale is recent, and whether their latest revenues can be credibly compared with yours.
Other businesses’ Price/Earnings ratio, or P/E, can also be used as a tool to compare similar businesses, but if your business is unquoted, it should only be compared with other unquoted businesses.
Getting in touch with our professional business sales brokers will provide the information you need on other businesses similar to yours, and the prices they achieve on sale.
Contact Selling My Business to determine how much similar businesses sell for
To find out how much these businesses have sold for, and for expert guidance on the best way to sell your business or a free business valuation, please get in touch with our director-led team at Selling My Business.
Our experts have extensive experience of carrying out successful business sale transactions, and will provide trustworthy independent advice throughout the sale process. We offer free, same-day consultations to quickly establish your needs, and operate from a wide network of offices around the country.