Business Valuations are a service that KTS has always provided for our clients, but perhaps many of you are not aware of the circumstances in which you can benefit from that service.
What is a Business Valuation/ Appraisal?
A Business Valuation/ Appraisal is an estimate of the value of a business that you might be wanting to buy or sell.
If you’re buying a Business:
If you’re buying a Business, then the seller’s business broker will most likely have appraised the business for marketing it. But how reliable is that appraisal when the broker is acting for the seller? Obviously, the asking price will be on the higher side to get the best price for the seller.
This is where you can benefit from KTS making a critical appraisal of the business for you.
We’ll also take into account how you’re financing the business purchase and whether you can really afford the purchase price.
In most cases, buying a small business will cost you a $100,000 plus, so it makes sense to have your accountant look over your proposed purchase with you.
If you’re selling a Business:
If you’re selling, the same principles apply – you want to get the full value of your business that you’ve worked hard to build up.