Methods of Business Valuation: Business Value and Sale Price

When a company is to be sold, the company's value forms the foundation for the sale price negotiations. However, this value, which can be objectively determined, is strongly influenced by the subjective factors of the contracting parties.

In the latest posts of our series "Methods of Business Valuation", we showed you four methods that can be used to determine the value of a business. Through a suitable choice or a combination of these methods, a value was determined which now forms the foundation for the sale price negotiations. In most cases, however, the sales price of the business does not match the business value, as the value of a business can indeed be determined objectively, but in practice subjective factors have a huge impact on the price negotiations. For example, if the business is sold to a family member or to the long-standing manager, the actual sales price is usually below the business value. On the other hand, if it is sold to a financial investor or a competitor, the sales price is usually higher than the value of the business. Findea helps you keep your taxes simple and hassle-free.

• Further information
   
• Calculate offer for fiduciary