05 Apr Boss Talk: All About Pricing a Business
In this 4th episode of Boss Talk, hosts Jim Parker and Carey Sobel delve into the process of pricing a business for sale. They discuss why accurate business valuation is crucial, not just for achieving the best sale price, but due to the fact that only a small percentage of businesses on the market actually sell. The episode covers the importance of using various pricing methods and tools to suggest a business’s worth, the roles of brokers and appraisers in valuation, and the criticality of pricing businesses correctly to prevent them from languishing unsold in the marketplace. Our hosts also tackle common issues and misconceptions in business valuation, including the misunderstanding around CPAs’ valuation knowledge, the effects of over or under-pricing, and the significance of adjusting financials for accurate valuation. Additionally, they provide insights into evaluating financial statements, determining add-backs, understanding the impact of market conditions, and navigating the nuances of EBITDA vs. Seller’s Discretionary Earnings. This comprehensive discussion aims to equip business owners with the knowledge to understand the valuation process better, ultimately assisting them in preparing their businesses for sale effectively.
