For starters, it may be a good idea to hire a business attorney. These professionals can help you find out the real value of your business. They have the necessary experience in this field and vast knowledge which helps them find the right way to evaluate a business of any kind.
Next, you should check your revenue reports for the past few years. Analyze the profits before compensations and taxes. It’s the best idea to focus on the last two or maximum three years because the reports from before are not that relevant. You must be realistic and see how your company performs at this moment.
The next step is to check the revenue numbers. Don’t skip the details. In case the revenue stream points out that there is a steady growth in the last 3 years, this has a positive impact on the price. But, if these numbers are going down, then you should be prepared to lower the price. Of course, these numbers won’t mean that much if you have a plan to boost the sales and present it to the potential buyer in the right way.
During this process, it’s also a smart move to hire an independent appraiser to confirm the value of the business. These appraisers have knowledge in different areas and in many cases, they are more experienced in different fields than you are. This is a second opinion that can help buyers make the right decision.