Understanding the Challenges of Selling Your Construction Business Part 2
The vast majority of businesses that are listed for sale never actually sell. Although you may feel your business is worth a certain value, the truth is that it can be extremely challenging for even the most successful construction business owner to find a prospective buyer. In this four-part article, a Tampa construction lawyer is discussing several challenges of selling your business. In the last section, we discussed how to maintain the value of your business once the most valuable asset (the owner) is ready to retire. In this section, our Tampa construction lawyers will cover how to gauge the value of your business during the selling process.
Do You Know What Your Business is Worth?
If you have no experience selling a business, chances are that you do not have an accurate valuation of your business. Although the owner understands the many nuances of their business operations, without an idea of the market, they have no way of knowing the actual worth. It’s only natural that an owner would have an inflated value for their business; however, if you seek an unrealistic asking price, you are only doing a disservice to yourself. Moreover, once you begin to lower your asking price, prospective buyers will see that you are not confident in what you are doing. You are essentially sabotaging your own sale by seeking an unrealistic asking price.
Determining the Value
Before you sell your business, you need to determine the actual value of your business. In order to do this, you need to spend time analyzing your profit margin over the last few years, evaluating your assets and liabilities, and comparing your business to competitors in your market. Lastly, you need to consult with an experienced Tampa construction lawyer that understands how to appropriately account for all of these issues and can take this information and determine an accurate valuation for your business.
If you would like to speak with one of our Tampa construction lawyers, please contact us today.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.