In putting a price tag on your business, this is a common, costly misjudgment. It may have nothing to do with market value, however. Owners need to take a step back and learn the value of their company, taking into consideration the size, industry, customer base, growth potential, competitive positioning, product mix, the value of similar companies and numerous other variables. By understanding the buyers in the market and applying objective, proven valuation methods, business owners can arrive at a rational selling price for their business. Cultivate several potential buyers .
Many sellers pledge their heart to only one prospect during the courting process.
Don t delude yourself into thinking you are the sole object of a prospect s attention. Buyers are looking at companies other than yours. You should play the field, too. Few things strengthen your negotiating position more than the interest of several qualified buyers. You ll be shorting yourself if you don t seek out multiple suitors.