Hot Topics - Determine the fair value of your business

Hot Topics - Determine the fair value of your business from Bizsellbuy

By: Bizsellbuy  14-Aug-2011
Keywords: Businesses for Sale, Business for Sale, Business Broker

Anyone who has ever purchased or sold a house knows that a finance institution or bank will do an valuation on the property to establish fair market value . Sellers of property will often get a comparative market appraisal CMS from their real estate agent to help a fair price in the market but when it comes to sell or buying a business how to you determine the fair market value of the business ? The major part of the total value of a business is often goodwill.Without the reasonable probability of the earnings of future maintainable profits, no present value in the form of goodwill can reasonably exist. Goodwill must be capable of being transferred. It has been said that “market value is that price at which the business is most likely to change ownership at an arm’s length transaction between buyer and seller, neither under a particular compulsion to act.” Today’s business purchasers do not make their decisions based on emotional reasons, they calculate the value of a business to them based on sound profitability, the sustainability of those reported earnings and the Return On Investment (R.O.I.). of 30-35% R.O.I. for a medium risk business

Keywords: Business Broker, Business Brokerage, Business for Sale, Businesses for Sale, Free Business Appraisal, Sell a Business

Other news and updates from Bizsellbuy

Selling a business? from Bizsellbuy thumbnail
02-Jun-2013

Selling a business?

BizSellBuy has fully licenced and experienced business brokers who acts on your behalf in the sale of your business. All enquiries come directly to your business broker who will co-ordinate all aspects of the sale of your business with you., This includes handling enquiries, qualifying prospective buyers, conducting inspections, negotiating price and dealing with solicitors and accountants relating to contract requirements . Click 'Find a Broker" for a FREE consultation and business appraisal


Goodyear Windor Sold  and everyone is happy ! from Bizsellbuy thumbnail
01-Jun-2013

Goodyear Windor Sold and everyone is happy !

May 2013 Goodyear Windor in NSW recently sold by the team at Bizsellbuy Professionals tyre shop brokers


Bizsellbuy Business broking service from Bizsellbuy thumbnail
01-Jun-2013

Bizsellbuy Business broking service

Bizsellbuy is now offering a fully licenced and experienced business broker acts on your behalf in the sale of your business. All enquiries come directly to your business broker who will co-ordinate all aspects of the sale of your business with you., This includes handling enquiries, qualifying prospective buyers, conducting inspections, negotiating price and dealing with solicitors and accountants relating to contract requirements


13-Jun-2012

Small businesss news - Deductibility of Superannuation

to claim a tax deduction for super contributions as an employer or as an individual in 2012 , the


13-Jun-2012

Small business news - defer income

If you can defer income until the new financial year. In particular this can work for service businesses or


13-Jun-2012

Small business news - Dividends

It is suggested that if you operate through a company and are going to pay dividends this financial year


13-Jun-2012

Business News - Insurance rebate

From 1 July 2012 , the private health insurance rebate will be subject to income test affecting singles erarning


12-Jun-2012

What is my business worth - Automotive repair shops

Automative repair shops have been selling for 2 - 4 x monthly gross turnover + stock or 1.5 x


12-Jun-2012

What is my business worth - Tyre Shop

As a general rule retail tyre shops should net around 10-12% of annual gross turnover . Therefore a business


12-Jun-2012

What is my business worth - Bed & Breakfast

Bed & Breakfast operations are sometimes more about the lifestyle and a second income , then a full time


10-Jun-2012

Small business ideas - Green

Many small business are going green , whilst you may consider your business not to be green you should


10-Jun-2012

Small business ideas - Develop on line business

There is lots of growth potential for small businesses achieve via on line activity , not just advertsing and


10-Jun-2012

Business ideas - Succession Planning

To ensure the long-term success of you business, it is important to design a succession plan . Co ordinate


10-Jun-2012

Small business ideas - Strategic Planning

The pressures of daily business can often mean strategic planning takes a bacl seat , but to have successful


07-Jun-2012

Hot Topics - Starting a Business

If you have a good idea for a new business or are buying an existing business it is important to