By k | August 30, 2012 - 6:00 am - Posted in New Business Development

we talked about how
we should always be open to selling.

But how do we know
an offer is worth considering?

We compare the $ offer
to the price of our business.
We need to know this price NOW
(updated regularly).

Why now?

Because when we get an offer,
the knee-jerk reaction is
“If he’s offering this price,
the business must be worth much more.”

Not necessarily.
Buyers overpay for businesses
all of the time
and knowing our price
allows us to cut out this emotion.

I start pricing at
the resale cost of the assets
plus 10 year accumulated discounted cash flow.
Then I tweak for any special considerations.

Know the price of your business
Be ready for that offer.

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