When thinking about selling the business, we urge you to talk to us first about evaluating the company. Why?

1. You do not want to leave any money on the table. Furthermore, you do not want to take yourself out of the market due to over pricing the business.
   
   
2. The Buyer's confidence level is directly affected by this unbiased evaluation process. They are more receptive to a deal.
   
   
3. It helps us to market the business with an independent third party evaluation. It establishes a realistic pricing and acceptable standard terms that bring the selling process to a quicker close.

We like to quote W. W. Bumstead, President ABC Advocate Business Consultants, who states:

First, you must realize that the price paid for an appraisal is not a cost, but is an investment similar to insurance. The more insurance you buy, the more you receive when it pays off. Consequently, the less insurance you buy, the less you do for your family when they need it the most.

Second, understand that you should not be shopping for price, you should be shopping for accuracy. Discounters of anything always deliver less quality of product and/or services in order to be able to discount their price. It's just a simple matter of economics. When something is discounted, it's the quality that is always lowered.

Generally, we suggest an independent third party evaluation for companies that start from $500,000 and up in sales. It protects the seller; it protects us; it protects the buyer! The importance of timing in selling and evaluation of companies is emphasized by Linn Craden. Linn Craden is the largest M&A intermediary on the west coast.

Mr. Linn Craden, President of Craden Associates, states:

Many owners believe they should not sell a business unless it is doing poorly. Traditional reasons that have caused businesses to sell are problems with capital funding, a lack of heirs to take over the business personal problems such as poor health, divorce, burnout or the death of a key manager. Businesses that sell for such reasons often sell for less.

Timing is crucial to achieving the highest selling price. Instead of waiting for unfavorable conditions, potential sellers should watch for the optimum time to place their business on the market. Understanding sales and industry trends is an important key. Creating a strategic exit plan also provides an excellent barometer for knowing when to sell.