"Working with Julie White and BlueKey Business Brokerage to sell my market research company was far easier than I ever imagined. In fact, I was afraid I would be in for a long sales period and a barrage of tasks and inquiries. Julie is so incredibly organized that I was able to bring the paperwork she needed together rather quickly based on her document process. In addition, I was very pleasantly surprised that within a few weeks she brought me multiple offers. The sale of my company happened quickly and efficiently. Throughout the process, Julie was supportive, knowledgeable, and dedicated to securing a good outcome for both me and the buyer."

-S. Fox, Former CEO

VALUING YOUR BUSINESS

Every seller must ask themselves, "How much cash do I want to receive at the closing?" or "What is my premium price?".

When pricing the business for sale, the more realistically the business is priced, the faster business will sell. Most small businesses statistically sell on a multiple of 2 to 5 times adjusted net cash flow, depending on the industry. When pricing the business, be sure to enlist a certified business appraiser or an experienced business broker to provide you with an opinion of value. The opinion of value will be determined by adding owners salary, health benefits, financial perks, depreciation, amortization and non-reoccurring expenses to the net income stated on the profit and loss statement or tax returns. By adding these items back to the financial statement, a buyer will have a better idea of how much income he or she can expect to receive when they take over the company. The adjusted net profit is frequently referred to as Discretionary Earnings.

After receiving your valuation, compare the current value of your business to your proposed exit date and premium price expectations. Is your premium price realistic? Is the time frame realistic to reach the necessary sales levels to achieve that price? In order for you to reach your goals, all elements must come together.

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