Small Business Appraisals

One of the most important aspects of being a small business owner is knowing what your business is worth. Having this information in your back pocket allows you to made educated decisions when it comes to taking important steps or making big changes within your business. Being able to move ahead with plans to expand your business with confidence is invaluable. Finding an experienced small business appraiser is the first step in gaining this peace of mind.

A quality appraiser will be able to evaluate you and your business to decide which method of valuation is right for your situation. Each valuation method has it’s advantages in rating a business’s worth.

Retail – These are the prices that are charged to consumers in stores. Usually this means that these will be the highest prices due to retailer markups. This method is most common for insurance purposes. In the event of a total loss you’ll want your inventory to be replaced in whole rather than at discounted wholesale values.

Wholesale – This method is most useful when dissolving a partnership or selling a business. Wholesale price is higher than the manufacturing price but lower than marked up retail prices. When selling a business you’ll want to make the sale price as attractive as possible since the new owner will be aiming to make a profit on their purchase.

Liquidation – This is the most common when closing out a business altogether. Liquidation value is often times less than fair market value because in most cases the small business owner is working under a strict time restraint. When working within this type of time frame this method is the way to go because it is the quickest and in many ways the least complicated.

For more information on valuation methods used by the appraisal staff at Ideal Trading Liquidation Company in New Jersey please visit our website here.