What do I need for an opinion of value when selling a Florida business?

When seeking an opinion of value for selling a Florida business, you would typically engage the services of a professional business appraiser or a business broker. To provide an accurate opinion of value, they would need access to specific information about your business. Here are the key documents and information you should be prepared to provide:

  1. Financial Statements: Provide several years’ worth of financial statements, including profit and loss statements, balance sheets, and cash flow statements. These statements should be prepared following generally accepted accounting principles (GAAP).
  2. Tax Returns: Share business tax returns for the past few years, including any relevant schedules and supporting documentation.
  3. List of Assets: Create an inventory of all business assets, including equipment, machinery, furniture, real estate, and intellectual property.
  4. List of Liabilities: Provide a list of all outstanding business debts and obligations, such as loans, leases, and accounts payable.
  5. Customer and Sales Data: Share information about your customer base, sales figures, and sales trends over the past few years.
  6. Supplier Information: Provide details about your key suppliers and any long-term contracts with them.
  7. Employee Information: Share details about your workforce, including the number of employees, their roles, and compensation.
  8. Industry and Market Information: Give insights into the industry your business operates in, market trends, and the competitive landscape.
  9. Legal and Regulatory Information: Share information about any legal disputes, pending lawsuits, or regulatory compliance matters that could impact the value of your business.
  10. Business Plan and Projections: If available, provide a business plan outlining your future goals and projections for the business.

Remember that providing accurate and comprehensive information is crucial for obtaining an accurate opinion of value. It’s also essential to maintain confidentiality during the valuation process, especially if you’re not ready to announce the sale publicly. Engaging a professional business appraiser or broker will help you navigate the valuation process effectively and ensure that your business is priced appropriately for the market.