All too often, their asking price is based on industry rumors or estimates of how much money they need to retire comfortably. On the other hand, buyers do deals every day. They know exactly what they want - and how much it's worth in cold, hard cash. That may not seem like an enormous difference until you actually run the multiplication. In fact, there may be hundreds of thousands of dollars difference depending on where your business rates on the scale buyers use to determine value.
Some criteria depend upon an individual buyer's preferences or current operating procedures.
For instance, having a compatible mix of services will boost your business's value in the mind of a buyer. A large percentage of commercial accounts may appeal to one buyer but not another. Or a buyer who isn't Sentricon-authorized may pay a premium for your business if you can arrange for them to assume your authorized operator status. Still, most of the difference in value is based on a series of industry standards and a buyer's offer is made after a thorough review that determines how your business stacks up. If you're getting ready to sell your business, knowing how a potential buyer will rate it makes you a much better negotiator.