Factors That Influence Your Value

Top 10 Factors that can influence the value of your business

Factors That Influence Value Of Business

There are many factors that can affect the value of business when it comes to selling your business.influences


Here is a look at the main factors that have the biggest influence on the value of business when you are selling your business, and when asking the question what is my business worth?

    • Industry Outlook If the outlook for your industry is bright, the price of selling your business will go up.
    • Customer BaseLimited customer concentration with no single customer representing more than 5-10% of revenue the price goes up.
    • Depth of Management & Sales TeamsWhen selling your business if the business owner wears all of the hats, the price goes down.
    • A Strong Background Being able to tell a good (and truthful) business story is critical in helping a buyer recognise the value within a business. Selling your business with an experienced business broker will compile a good story that best showcases your business to potential buyers.
    • Industry ConsolidationWhen selling your business if a business’ industry is experiencing consolidation with the big companies getting bigger through acquisition, then prices for smaller businesses will rise.


Ask Your Business Broker

It is always a good idea to ask your business broker when selling your business to help point out these factors so you can concentrate on all the positives and potential aspects of the business when selling your business. Business brokers are trained and have the experience to guide you when selling your business. Business brokers can help prepare the business for sale when you are selling your business.


Other Factors to Consider

      • Track RecordWhen selling your business a track record of constantly growing sales and profits, buyers will be willing to pay more when selling your business.
      • RevenueWhen selling your business the larger a business’ revenue, generally the higher the selling price. A business with $25 million of annual sales will usually sell for more than a business with $5 million in sales.
      • Market Position When selling your business a business that dominates its market or holds a unique niche in the market will sell for a premium over other businesses not dominating their markets when selling your business.
      • Multiple Buyers  – When selling your business this is one of the most important factors. When there are multiple buyers vying for a business, the price of the business has a good chance of exceeding the price paid for a business sold without competitive bids.


It is a stressful time but with the aid of a business broker you can rest assured when selling your business it will be a smooth journey. Selling your business should be a time of happiness as you should be getting a good price rewarding you for all the hard work you have put in to create this business.


Selling your business is very important to you so a business broker should always be your way out when selling your business. All the agents at Absolute Business Brokers have purchased, owned, operated and sold a business before, so we speak from personal as well as professional experience when it comes to selling your business.  So If you would like to speak to one of our senior brokers in selling your business and just have a chat send an enquiry today!

Absolute Business Brokers engages in transactions that require the utmost level of confidentiality, similar to the relationships of Lawyers and Accountants with their clients. We will not discuss any confidential details concerning our agreement to sell your business over the telephone, nor will we give confidential information to potential buyers until they have signed a confidentiality and nondisclosure agreement to sell your business.


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