How does a seller price his or her business?

Typically, a seller will come to a Provest for advice on what a business’ selling price should be.  After carefully reviewing financial information, we suggest a range of prices.  We take market considerations into account.  While a seller may already have a figure in mind, we will recommend a price range.  When more cash is required by the seller, the price will be lower.  In contrast, when there are lower cash requirements, the price is generally higher.

In today’s market, many business sales have a seller-financed component.  As a result, the down payment and terms are essential. In many cases, the structure of the sale is more important than the actual selling price.  The fact of the matter is the terms of the sale can mean success and failure.