It's essential the price be realistic, because the business must generate sufficient income to cover financial responsibilities. Buyers want to know how much return they can expect for their investment in a business. The variations in the cost of doing business get buried in the books, but may be part of the owner's true income. In actuality, it is a combination of tangible and intangible assets that determines market value. Tangibles include furniture, fixtures, equipment and inventory.
Intangible value is much less visible and boils down to the income a business generates.
A competent business appraiser can prepare the documentation to represent the worth of your business on paper. Not an insurmountable task. Generally, for example, seller financing in lieu of an all cash sale will yield more potential buyers and glean a higher price overall. Many times creative terms may have a positive effect on tax consequences as well. Gary Chamblee is associated with American Heritage Realty and Investments in Jackson.