Pricing a Business to Sell
How do you price a business? Does the size of the business influence the price in relationship to DE or sales? Does pricing it too high hurt your chance of selling it? When you complete this course, you should have additional knowledge to help you price a business properly. Using databases of sold businesses, you will learn the relationships between the size of a business and Multiples of Discretionary Earnings, ROI and how comparable sales data can be used to determine an “opinion of value” for a business. This course will help you learn how to avoid overpricing a business, and how financing and deal structure influences buyers decisions.
It is recommended that you have taken IBBA #101 Introduction to Business Brokerage or IBBA 301 Introduction to M&A; IBBA #210 Analyzing and Recasting Financial Statements; and IBBA #220 An Introduction to Pricing Small Businesses.