Would you like a valuation consultant to call you?
Businesses For Sale
There are hundreds of businesses for sale in Western Australia and in Perth on any day. These businesses for sale can be seen on anyone of various websites (such as www.buyabusiness.com.au or www.bbawa.com or www.perthbusinessforsale.com.au etc). Although these days there are less businesses advertised in the West Australian Newspaper and The Sunday Times, there are still many to be found, particularly on Saturdays in the West.
The question is How Much are they Worth?
We know the asking price of these businesses for sale, but is the price representing good value? We expect the owners to ask what they would ideally like to achieve in a sale, and we also know that the businesses for sale may have asking prices set on "what the owner needs to achieve to get back what the business owes them"
But do you have to pay that price? The answer is no.
You should only pay what represents fair market value for a business for sale...not what the owner "needs".
But how do you determine what is fair market value? Fair market value represents what other buyers have been consistently paying for very similar sized businesses and with very similar profits and also in the same part of the business sale cycle. In other words comparing " like with like".
So how do you find such relevant sales evidence of businesses for sale or business whch have been sold?
The answer is to contact Perth Valuer's co- ordinator Gaham O'Hehir at support@businessvaluer.com.au or call 1300634588.
His team have thousands of sales logged and can prepare a valuation report for you for between $2000 and $4000 depending on the complexity of the business. This should be viewed as an investment, not as a cost. A well researched business valuation report can save you hundreds of thousands of dollars.
