Posted on 02/26/2007 11:11:29 AM PST by Tuscaloosa Goldfinch
My husband is thinking of selling our business. The business is operated out of our home, provides us with a good income (I am a SAHM and his office manager) we have no employees at the moment. A business associate of my husband's expressed interest in the business a few months ago, and would more than likely hire dh to run the business after the sale. Other factors: we are purchasing two investment properties, which may qualify for the go-zone depreciation allowance, have one child still at home who may or may not go to college. We do not intend to carry the financing for the business - the person who expressed interest would either provide his own financing or would be able to obtain financing from a bank. WE have been told by a loan officer that they would lend a specific amount for financing. Is that what the business is worth, or is the bank assuming that the buyer would provide a down payment in addition to the loan obtained?
Sorry -- the last business we sold was 16 years ago and not worth what this one is to us.
How do we price this business?
I would talk to a business consultant, and have them appraise your business based on your books.
Thanks.
Do you know where to find a business consultant that would be able to handle this?
If she does not have any contacts who could refer her to one who is trustworthy, her best bet would be to look in the phone book, under appraisers, and get a couple of business appraisals done.
I was gonna say: Burn it down for the insurance, but then I learned it was run out of your home.
Thanks -- I'll look into that.
No - can't do that LOL.
You are very welcome. Good luck.
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