Pricing a business is more of an art than science. Sellers that happen to look at the big picture like the deal structure and pricing, are usually more successful in selling their business. One of the reasons, business valuation is such a complicated issue is because there is no standard methodology available to value small businesses for sale.
The actual value of your business is the amount someone is willing to pay for it in the business-for-sale marketplace. Personal feelings about your company’s worth are far less important than accurate documentation and other factors that could potentially influence value. It is important for sellers to recognize that the principal reason buyers purchase is for a Return on Investment (ROI). All buyers are ultimately seeking to profit from their purchase by getting a suitable ROI so it is very critical for a seller to have a successful exit plan thought out from the point of view of the buyer.