eBusiness Appraisals News

Each year, business owners decide that the time has come to sell their businesses to another party. eBusiness Appraisals encourages all business owners to order the completion of a complete business valuation. Early in the process, the reports generated from the valuation will provide support for the asking price. Those who attempt to sell a business without professional guidance will make one or more of the following mistakes which can jeopardize the sale.

1. Incomplete documentation – A Confidential Business Review, or CBR, is the document provided to prospective buyers after a confidentiality agreement is signed. eBusiness Appraisals can assemble an accurate CBR that will support the asking price and reveal the business strengths.

2. Publishing asking price – If the owner publishes the asking price for the business, the seller is handed an advantage. Perceived value of the business can be substantially higher than the seller’s personal assessment.

3. Sharing confidential information – Proprietary information must be guarded closely by the seller. Competitors can pose as buyers and steal the most important business secrets with no intention of buying the business.

4. Undervalued intangible assets – Sellers have a different view of their business than the buyers will have. eBusiness Appraisals works closely with sellers to underscore the off-balance sheet assets to certain buyers that will appreciate their contribution to the value of the business.

Professional consultations with experienced counselors will ensure that the business owner receives the best price for the business. eBusiness Appraisals conducts business valuations for companies of all sizes. Whether the time is right to sell the business or not, annual business valuations provide important information for the decision makers.

Throughout the fiscal year, the details revealed in the valuation reports will provide insight for every decision. Educated guesses will become informed choices when the business valuation reports are used to set annual goals.

When negative comments circulate about a restaurant, the business owner must figure out what was said and how to counteract the allegations. Business reputation can drive customers away faster than actual mistakes that are made. eBusiness Appraisals knows the value of creating a reliable public image. Since the advent of social media, one negative comment can take on a life of its own in cyberspace. Existing customers can make the decision to go elsewhere and potential customers are lost before they arrive. Consistent stellar performance is just one element of ensuring that the business reputation in the marketplace remains positive.

Some companies take the added measure of hiring a reputation management firm that monitors hundreds of message boards and websites for derogatory comments. This added measure can require a monthly fee, but companies are reducing the impact of negative comments with proactive measures. When a single negative comment can be moved off the first page of search results, the damage can be reduced. Providing reputable sources of information that answer questions and give product information will keep customers in tune with the company’s capabilities. Less effort is spent chasing the negative statements than filling the information void with positive information.

Company reputation is considered an intangible asset that can impact the valuation of the company dramatically. If the company is on the market, potential buyers will seek proof that the business has a trusted reputation in the community. Sales potential is threatened by damaging comments that have not been addressed. eBusiness Appraisals considers the quality of the company reputation in the assessment process that will be used to set the company value. When the company changes owners, the positive reputation must be sustained to prevent loss of the initial investment by the buyer. Hard work to maintain a positive image is an investment in the future.