When people think of starting their first business, most of the reasons they list for wanting to make the entrepreneurial leap include: setting their own hours, controlling their financial destiny, and not having anyone tell them what to do.

You start your business with dreams of building your fortune. When it comes time to sell, you will want to keep as many of those dollars as you can in exchange for your blood, sweat and tears. Advance planning can make a big difference in the amount you pocket after the sale.

Valuing a privately owned business is not as simple as appraising a piece of real estate. For a start, there is no publicly available information to do comps. Click here to see the PDF.

Learn some of the key factors that will influence what someone will pay for your business. This includes Historical Earning Power after recasting the Tax Return information, Buyer’s perception of the risks, and their Return on Investment criteria (ROI).

When selecting a business broker to assist you in the process of transitioning the ownership of your business, there are several criteria to keep in mind. Making the right decision (and being able to right a “wrong” decision) can make all the difference.