Business owners, at some point in their growth journey, may think of selling their companies, Many startup owners start a business only to sell it to big companies when the value of their business increases. If you are thinking of selling your company, it is critical to know its real value. A business valuation in this regard should start even before your company goes up for sale in the open market.
This will give you more time to increase the company’s value so that you can fetch a higher selling price. Understanding a company’s resale value can give you the power to negotiate a better selling price. You may use black-and-white statistics, provided by audit firms in Dubai, to strengthen your stance on the higher selling price. Big companies try to determine the value of their business two to four years before its contemplated sale.
Better During Mergers/Acquisitions
If a big company asks about buying your startup, you must be able to show them the value of your business as a whole. It means what its asset withholdings are, how it has grown, and how it can continue to grow. Big corporate groups will be trying to acquire your business or merge it with theirs for the lowest possible amount.
If you have not conducted a proper business valuation, you will be forced to sell the company for the price they offer. However, if you know the true value of your business you can sell it for the appraised valuation numbers provided by auditors in Dubai. If the potential buyer offers a less price, you can reject the deal or enter into a negotiation mediation. This will help both parties arrive at an amicable agreement on the price.
