Several factors influence the evaluation of businesses. Sales and profit margins are significant to most buyers and investors, but there is a lot more to take into consideration.

In every industry, the valuation process differs from industry to industry. Many other factors should also be taken into consideration by a prudent buyer, such as:

• Location of the business

• The type of clientele and the hours of operation – my target market

• What type of business is located nearby, and how many of them are there

• Is this a new company or has it been in business for some time?

• Over what period of time has the business operated successfully?

• When it comes to their growth over time, what has been the pattern?

• In what ways is the competitive landscape changing?

• The business has a wide range of competitors or it is a niche one.

• How much does the company currently own in terms of assets

• Does the company keep a list of inventory, properties, personnel, and vehicles?

• In what amount and to whom is the company indebted?

• The terms and conditions of leasing, including renewals and exclusive rights

It is merely a general list of items to examine, but every business entity needs in-depth due diligence in order to determine its value.

Let our years of Real Estate experience help you buy or sell a business entity. A Quick Zoom Meeting can be the starting point.