What Is Your Business Worth?

Discover how a Business Broker will value your business.

Working with a professional Business Broker can help to realistically price your business for sale.

Many Sellers, before meeting with a Business broker have an idea in their mind as to how much they should ask for their business.

Their CPA or their friend or their realtor may have offered suggestions. So at the time when they do meet their Business Broker and the Broker offer a suggested selling price, sellers will sometimes respond with the dollar figure that their CPA, friend or realtor thought that they should sell for.


The predicament of the business Brokers is how to and will they tell the seller that the price will be too high for their business.

Most professional business brokers will explain the reality of an overpriced business including the fact that overpriced businesses help reasonably priced businesses of the same to type to actually sell.

A business owner needs to understand that a Business Broker is valuing the business logically and realistically based upon past sales and experience whereas a seller looks at the business emotionally.


The art of valuing a business is just that, it is an art and not a science. A business sells for what a willing buyer will pay and what a willing seller will accept.

 

Another option is to obtain an outside valuation for a cost of about $3,000.00. Sometimes these outside valuations are theoretical and not a Market Price Analysis and may not be worth the cost.


For more information on how a business is valued, contact your First Choice Business Broker professional whose only position is listing and selling businesses full time.

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What is a Quality of Earnings Report and Why It Matters Buying or selling a business isn’t like buying a car. You don’t just check the mileage, kick the tires, and call it a day. When the stakes are in the millions, you want to be absolutely sure the numbers add up—and that they’ll keep adding up after the deal closes. That’s exactly why a Quality of Earnings report exists. Think of it as the difference between looking at a selfie and getting a full medical check-up. Financial statements are the selfie—nice snapshot, but not the whole truth. A QoE report is the check-up—it tells you what’s really going on under the hood.
By AZ Broker August 12, 2025
What Is Working Capital, and Why Should You Care? When selling or buying a business in the U.S., one financial term often causes confusion and frustration: working capital adjustment. It sounds technical, but it’s actually a very practical concept—especially when you're about to exchange hundreds of thousands (or even millions) of dollars. So, what is working capital? In simple terms, it's the money a business needs to keep operating every day. That includes paying bills, buying inventory, and handling short-term expenses. Here’s a basic formula: Working Capital = Current Assets – Current Liabilities Let’s use a real-world example. Imagine you own a small bakery: You have $50,000 in cash, $20,000 in flour, sugar, and inventory, and $15,000 customers owe you. That’s $85,000 in current assets. On the other hand, you owe $25,000 to suppliers and $10,000 in employee wages. That’s $35,000 in liabilities. So, your working capital is $85,000 - $35,000 = $50,000.  This $50,000 is the fuel that keeps your business running. And when you sell the bakery, the buyer expects that same fuel to be included—unless you agree otherwise.