After years of hard work, investing time and money, taking risks and facing thorny questions about its strategic direction, planning the transfer of your business is a subject that can lead to mixed feelings for its owner.
Between looking forward to a well-deserved retirement that will enable you to take on new projects, both professional and personal, and the agonizing decision to hand over the reins of your company to a new leader (employee, ordinary buyer, competitor, etc.), a multitude of reflections need to be matured and decisions made. Considering the dedication and effort you’ve invested since the very beginning, it’s to your advantage to be accompanied by a team of seasoned professionals to bring this important transaction to a successful conclusion.
What about the fair market value of my business?
The first question to ask yourself is whether you want your company to continue as a going concern or to liquidate its assets. Before even considering the second option, call in a business valuation expert to validate the possibility of maximizing the value of your company by continuing its operations (a transfer/recovery plan will be required).
Thus, in a going concern context, the business valuation expert will be able to assess the fair market value of your company, based on recognized valuation approaches and methods. The conclusions as to its fair market value will serve as a starting point for negotiations with potential buyers, ultimately arriving at the price to be paid.
Fair value factors
Like your business, the fair market value of companies in the general contracting industry is affected by the following specific factors, among others:
- Our services
- Reputation and notoriety
- Assets held for operating purposes
- Contracts
- Our customers
- The workforce
- Certifications and accreditations
Preparation takes time
The process of transferring a business requires preparation well in advance, in order to maximize the value of your company. This process also requires you to be surrounded by qualified professionals to ensure that nothing is overlooked and that all aspects of a transaction are covered: tax, accounting, financial, legal… and human.
Don’t hesitate to contact us if you have any questions about transferring your business.
