3 Factors to Consider While Pricing Your Business for Sale.

Are you in this situation where you have worked in your business for years with a lot of sacrifices and stress? You have managed to build a profitable business, and now you want to sell the business and don’t have ideas on how to price it. You are worried that you might charge less or more and rate yourself out of the market. You have been wondering if the pricing is right or wrong and don’t know how to get into the best price bracket.  Worry no more. Here are 4 factors that you should consider when pricing your business for sale:

Assets in your business

Before you sel lyour business, it is essential to consider its assets. Your business may have other items which you may not list as assets in the financial reports. However, these items are assets since they play a crucial role in the success of your business. Things such as vendors relationship, customer lists, and employees form part of the assets during the selling period. As such, you need to consider them. You can price them as assets than rating them with the entire business. Also, you can decide whether to transfer the ownership of the trademarks and patents or not. All in all, you should consider the business assets when setting your business for sale.

The market prices

You are not the only person selling a business in your niche. Thus, there are set prices for businesses in your industry. Before placing your rates, you need to consider what other businesses in your category are being sold at. Again, you must do due diligence on why your counterparts are selling their businesses at that price. This way, you will have an idea of the best price to offer your business. If your business has better performance than the counterparts, you should price it higher, and the opposite is also a good idea.


Before rolling on your business selling process, it is essential to consider the plight of your employees. Will they have to find a new employer or the new owner will continue engaging them? Your employees are part of your business. They have played a central role to ensure your business attains its current status. Hence, when considering to sell your business, you must consider the job security status of your employees. Remember, you have invested in them. So, they should be part of your assets. 


By | 2018-06-02T14:08:44+00:00 June 2nd, 2018|Uncategorized|0 Comments