9. Get an Appraisal
What is my company worth?
One of the most considered items on a seller’s list when he begins to think about selling is the market value of the business. Most business owners deal daily with providing a quality service for a fair price. They study it, go to school for it, talk, eat, and sleep it. Of course, they know the business of providing a good service for a fair price. After years of trial and error, why shouldn’t they? Then, once in their career or once in their lifetime they decide to sell their business. How in the world does an owner expect to know the market value of his business with little or no experience? Well, quite frankly, they usually don’t, with few exceptions! The market value actually may become what one buyer, usually local, is willing to pay for your business at a given point in time, if not valued by a Professional Business Appraiser.
Who is a Professional Business Appraiser?
A professional business appraiser is someone who has had training in appraising businesses plus several other considerations as noted below.
1. A lot of CPA’s go by book value which is used in accounting but not necessarily appropriate for appraisal purposes.
2. Some business owner’s think they are appraisers because they have their own formula as to what they think the business is worth to their company, not necessarily market value, but usually have no business appraisal training. Ultimately some buyer, maybe a local pest control business, is going to decide what the price will be for your business; if no other company finds out your business is for sale.
3. Some owners and other buyers get your business information, and then have a conversation with you about how you handle your business. Afterwards, they make you an offer for as little as they think you will take because you do not know the pest control business market so how are you going to dispute what they want to offer? Additionally, owners usually do not know how much most businesses sell for or the circumstances they were sold under when determining their offer. Was it a sale because of illness and the owner had to sell now or lose all of it? Was it because the IRS was getting ready to pad lock the door? Circumstances usually dictate the price of the sale unless it is a deliberate sale for any logical reason. Forced sale means a lower price under usual conditions.
4. A Professional Pest Control Business Appraiser analyzes these circumstances and with the knowledge of what other businesses are selling for using several appraisal methods along with their experience in what the past sales have been, to determine a Fair Market Value for your business.
5. Value for any business is all about transferring the profit from your business to another owner without it losing any momentum or value. If the buyer perceives a possible loss of profit he will probably offer less. If he perceives an increase he may be willing to pay more. That is why it is so important to have more than 1 or 2 buyers.
The Market Price Does Change.
A lot of details of market conditions determine how much and when it changes. This is the reason I suggest strongly; All Sellers should get at least two opinions, if not more, related to the value of their business. Do this “before” placing the business on the market for sale. Compare the business opinion values. See what everyone says. Just remember what it cost for their opinion and from what perspective the opinion giver is representing when giving you a value. There’s a lot of information gathering, and it’s time consuming. If you decide this is too much trouble and do not get complete financial and customer account details, you are asking the buyer to take advantage of you.
What do buyers pay? The same as you would, as little as possible!
If you would like to have a PROFESSIONAL APPRAISAL by a professional appraiser, regarding the value of your business today and your business annual volume is less than $ 2,000,000.00; please complete and submit the following information with payment of $795.00: Prefer Federal Express for confidentiality and safe delivery.
1. CALL 1-800-707-8899 or 1-386-454-3333. Give us a credit card number, expiration date, and a cvv number. (mc, visa, discover)
2. A company or personal check, Master Card, VISA, or Discover for the correct amount.
3. Make checks payable to: A Plus Business Brokers, Inc.
The appraisal shall be sent to you in ten (10) working days or less. Volumes over $2 million or property settlement. Please call: 1-800-707-8899 or 1-386-454-3333 for pricing details.
YOUR INFORMATION FURNISHED FOR THIS APPRAISAL IS 100% CONFIDENTIAL
1. Two years IRS tax returns.
2. Profit and loss (P&L) for all months not included in the tax returns up to the present.Total amount of annual repeat revenue or contract work in each category.
3. (a) Number of accounts in each category, (pest control, termite, lawn and ornamental, or other)
4. (b) how often serviced annually
5. (c) Total annual dollar ($) volume.
6. Number of accounts that exceed 8% of your annual volume.
7. A list of all equipment, office, treating, and vehicles, included in the sale; state a current market value.
8. Any special proprietary business expertise, patents, special training, or other information that is unique to your business.
9. Name address and phone number of the person who files your income taxes with permission to call him/her should it be necessary.
10. What % of total sales is commercial pest control?
11. Please give some thought to and include a list of any expenses that you have now that a new owner would not have when you sell your business. This is very important factor to determine the real value of your business. We call it SUC or sellers usable cash. Every one runs their business differently and how you spend your money is your business. When determining the selling price of your business this money must be considered as profit as long as it is legitimate and provable. If you have any questions about this please call 1-800-707-8899, ask for AL.
12. List or describe any other information you feel is important and would have an impact on the value of the business.
13. Payment must accompany information. Appraisal will begin with receipt of your fee and correct information. You may pay by credit card, company check, personal check, or money order.
Conditions and Limitations
This Appraisal of Value is to be used strictly for the purpose of “determining the sale price of a business”. It is not to be used for property settlement of any kind unless so specified.
Analysis and conclusion in this report are based in large part on the information supplied by the seller. Any significant errors or omissions from the information furnished will have a corresponding effect on the analysis and on the conclusion reached.
No responsibility assumed for matters of a legal nature affecting the business appraised, nor is any opinion of title rendered. The analysis assumes a marketable title and has been made as though the property is free and clear of all liens and encumbrances except as specifically provided for in the report as noted in conditions of clarifications of the appraised value.
Submit Payment and Information to:
A Plus (+) Business Brokers, Inc.
171923 NW 242nd Street
High Springs, FL 32642-9122
For free Discussion Call: 1-800-707-8899 or 1-386-454-3333.
Best Time: 1-6 PM EST