Listing your franchise or business at the right price

Thinking of selling your business? Wondering what it is worth and most importantly what a buyer will pay for all your hard work?

Many business owners think about what they have put into launching their business and what they will get back into their pocket are at times two totally different situations.

When formulating a valuation of your franchise or your business, are you using a formula or are you simply thinking what it is worth to you personally? To further confirm what your valuation should be or get some assistance with this process, one should think about calling a top-producing, results driven broker to evaluate and establish a price, thus getting you closer to an accurate sale price and ensuring that your listed business does not stay on the market longer than it needs to.

Do you know what valuation formula is the most common for your business?

Typically in Canada, it is in the range of 3 to 4 times discretionary income by adding up what the owner takes home from the business and multiplying it 3 to 4 times. In some cases the valuation could be higher with a long-term lease in place or if the equipment holds a very strong asset value that produces cash.

Give our team a call today and we will assist in evaluating your business free of charge.

Tony Kereluke
Top Shelf Franchising