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What Franchise Business Owners Need to Know About True Business Valuation


Ever dream of winning the lottery? Many business owners view the sale of their business like that. They dream of a number they’d sell for and plan how they’d spend their winnings. However, when they actually go to sell their company, owners are often stunned to discover that their business is worth quite a bit less than what they thought.

Keep reading to learn how you can realistically value your franchise business so you can plan your exit strategy.

Real market value

It’s easy to assume that your franchise business is worth just as much or more than what another similar business was recently sold. It’s also easy to get stuck on a higher dollar value that doesn’t align with the market. Some business owners are so committed to their bottom line that they’re determined to wait on the market in hopes that it will catch up to their expectations.

This is a dangerous approach. If you want the market to catch up with your perception of what you think your business should be worth, you might have to face the fact that you’ll have to work many more years that you anticipated. Don’t forget about the recession in 2008. It’s been almost a decade, but some business owners are still working, and they’re still trying to get the value back in their business.

Realistic wins

When you consider the true value of your franchise business, the best thing you can do is to be realistic and make sure your bottom line is aligned with market realities. And while you think you may have a pretty good idea of what your business is worth, experienced advisors will show you that there might be more things to consider than just price.

Franchise Sales has experienced advisors and brokers that will help you get a more realistic, holistic view. Our professional advisors who will help you set goals and advise you as you consider timing – as well as other factors – when selling your business. Whether you want to sell now or ten years down the road, having an advisor will help you understand what your company is worth. They’ll help you come up with the most realistic exit strategy for when you’re ready sell.

Ready to understand what your franchise business is really worth? Contact us today to get started.