(54c) What Price to Pay? or What Price to Sell?

For an entrepreneur there will be many times that the valuation of their business will be fundamental to the success (or unfortunately the demise) of the business.

• How much to pay to purchase an existing business
• How much to pay to purchase an add on to expand your business
• The bank/lender needs to value your business so they can give you funding
• You have decided to sell your business – what price to offer.
• There is a buyer for the business and are you receiving the right value for your asset.
• Valuation of the ongoing business for ad valorem and other taxes

Understanding what an appraiser is looking at and how they are going to develop the valuation of your plant/facility will help you and the appraiser to get to the “right” value.  This will take much of the uncertainly and anxiety out of the appraisal process.

Looking at the value of the assets (“cost approach”), then developing the present value of the future of your business (“income approach”) then finally developing comparable sales of similar businesses in the market place will be done by the owner and the appraiser.

Clint Bogart has 20 years of appraising chemical plants, refineries, oil terminals and many other process related assets.  This presentation gives business owners and prospective business owners a unique opportunity of find out about the valuation process and how to maximize their valuation.