Minneapolis, Minnesota., - Knowing the market value of a business and understanding what makes it valuable, is crucial if an owner is to maximize liquidity, according to a firm specializing in the sale of private, middle-market businesses.
"Many business owners, motivated by the record-breaking activity in the current mergers-and-acquisitions marketplace, are exploring opportunities for liquidity," said Iqubal (Lucky Sajady, President of Venture Business Group, a national M&A firm headquartered in Minneapolis, Minnesota.
"For most entrepreneurs, the business is their largest single asset. Often, business owners place a value on their companies, which is without a realistic foundation. Moreover, when dealing with experienced buyers, this can be costly," Mr. Sajady cautioned.
"Private companies, unlike large high-profile public corporations, are somewhat more challenging to accurately evaluate, as many key elements of value are not obvious - even to the owner. In addition to not recognizing valuable facets within their business, owners also fail to understand buyer motivation. For example, from the perspective of a potential buyer, demonstrated and well-documented future growth potential is perceived as a prospect for return on investment and, therefore, could add significantly to perceived value," advised Mr. Sajady.
"External
factors also impact value. Currently the M&A marketplace has the benefit
of low interest rates and money readily available to buyers who are attracted
to the growth opportunities they see in middle-market businesses. When these
key factors change, the marketplace will change and business values will
decline," forecasted Mr. Sajady.
"Those business owners who are considering achieving their liquidity
goals through the sale of their companies, would be well advised to start
the process by knowing the real market value of the business. This important
first step will ensure that the final proceeds are maximized," Mr.
Sajady concluded.
Venture Business Group is the nation's leading specialist in mergers, acquisitions, and divestitures of private, middle-market businesses with values up to $50 million. Founded in 1987, the firm assists business owners in evaluating, building and selling their companies in order to realize maximum liquidity.
For More
Information Contact:
Corporate
Communications
Venture Business Group, Inc.
601 Carlson Center
Suite 1050
Minnetonka, Minnesota 55305
Tel: (952) 449-5247
e-fax: (763) 559-7998
merger@vbgi.net