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My Business is Worth What? California Association of Business Brokers Says Know the Value of Your Business

SACRAMENTO, Oct. 22 /PRNewswire/ -- The California Association of Business Brokers (CABB - a non profit trade organization) says if a small business owner is looking to sell their business but is waiting for the economy to turn around, use this time to start preparing. One of the most vital steps in this process is to understand what the business is worth.

Ron Hottes, president of CABB and of several Business Team Business Brokerages, says that a business broker's opinion of value can provide an objective view of what a business is worth and is important when determining the asking price. "A business broker's opinion of value gives a realistic starting point to work from and can give small business owners direction when determining the right time to sell."

Before thinking about selling your business, CABB says there are some key things to consider:

Take an objective approach: Having a business broker's opinion of value from a CABB Certified Business Broker gives the results and creditability you need. Having this neutral party take a comprehensive look at financial records and the current market is the best way to get an honest picture of the worth of your business.

Know what you need: Have an idea of what you need to make off the sale of the business so you can be as prepared as possible. If you are selling because of retirement, knowing what you can expect to make from the sale is an important component of your exit plan.

This is the starting point: A business broker's opinion of value is only a starting point in selling a business. If the opinion of value comes back less than what you anticipated, you know you have time to do things like improve sales and review operation processes to make your business as streamlined and profitable as possible.

"What's important for business owners to know is that a down economy is just one part of the cycle and an upswing will occur," Hottes stated. "Small business owners who take the time to improve and prepare their businesses for sale will be the ones who will see their business sold at the best price possible." www.cabb.org.

SOURCE California Association of Business Brokers