Expectations VS Reality

As a business owner, it can be tempting to try to predetermine a price for your business on your own before seeking the help of a Business Broker. You may even have friends or acquaintances in other industries such as Real Estate and Accounting who encourage you to envision an extraordinary price-tag for your company.

However, taking the wrong advice or telling yourself that you won’t sell for anything less than the value that you’ve decided by your own accord can be a bad idea for several reasons.

Market Formula

Firstly, you may not have an accurate understanding of the true value of your business on the Business Brokerage market, which could lead to pricing it too high or too low. This could result in severely limiting the buyer-pool, selling your business for less than it is worth, or not being able to sell your business at all because the price doesn’t make financial sense.

Buyer Wisdom

Secondly, predetermining a price without consulting a business broker can be the cause of a long or endless waiting period to find a buyer. Often, we hear from frustrated business owners who wasted years trying to find a buyer with no luck, only to find out that they were improperly advised on the value they were trying to sell it for. A Business Broker has access to the right networks, associations, tools and materials to determine the best value for your business on the market, which will attract sophisticated buyers worthy of passing the legacy of your hard work onto.

Hard Pills

Lastly, setting a predetermined price can also create unrealistic expectations for the sale of your business. If you have your heart set on a specific price, it can be difficult to accept anything less, even if it is a fair offer. This can cause unnecessary stress and delay in the sale process.

Here For You

Overall, it is best to speak with a business broker before setting a price to ensure that you have an accurate understanding of the value of your business and to maximize your options in the sale process. At Sunbelt Business Advisors of the Greater Bay area, we offer valuation services when you are ready to sell, but more importantly, advisory and education so that you know what to do when you get to that point.


JC Myer is the Operations Manager with Sunbelt Business Brokers. He can be reached at (408) 436-1900, or at [email protected]