Business Valuation Guide
Managing the Business Selling Process
After all the preparations are completed, it is time to get down to the steps of actually selling your company. A successful business sale transaction requires that you address the following:
- Generating qualified buyer leads.
- Handling buyer meetings and requests for information.
- Reviewing offers, structuring and negotiating all the elements of a deal.
- Collaborating with the buyer during the due diligence and closing.
To achieve your goals while managing all the details, you need a set of reliable and efficient deal structuring and business valuation tools. ValuAdder packs just the mix of tools for the task.
You can use the Market Comps, based on hard to find business sale transaction data, to instantly rebut unreasonable offers and justify your asking price.
The Multiple of Discretionary Earnings calculation enables you to quickly build a unique picture of your business value that fits the needs of the synergistic buyer willing to pay a premium price.
You can depend upon the power and precision of the Discounted Cash Flow method to impress the serious buyer. Input your cash flow projections directly, and let ValuAdder show what the buyer gets for paying your price.
The Deal Check allows you to construct and verify any number of business acquisition proposals. ValuAdder factors in all the elements that make a sound business acquisition deal, including the working capital and capital investments needed to run the business.
As you fine-tune the down payment, note, and loan terms, ValuAdder computes the cash flow requirements and automatically accounts for the standard debt service coverage ratio of 1.25 used by commercial lenders for acquisition loan approvals.
Offering attractive seller financing can often make you much more money than an all-cash deal. You can use the combination of the Deal Check, Discounted Cash Flow, and Loan Schedule calculations in ValuAdder to define the deal terms that get the serious buyer’s attention.
Quickly check various seller’s note terms. Discount the note income to see what it makes you in present day dollars. See how you make thousands more with a higher selling price, seller’s note interest income, and deferred taxes on the business sale gains.