What Influences the Market Price of a Business?

Profit is generally the main direct impact on market value of any business. However, some non-financial factors play an import role in both the sale price of the business and also the attractiveness of the business to a potential buyer. Such factors may include:

  • Great businesses have a history of profit growth, year in year out
  • Strong growth prospects which are clearly documented on where, when and how the business will achieve these
  • How well documented the business procedures and systems are
  • The strength of the business brandname(s)
  • Whether or not the business has barriers to entry for competitors
  • Ability for the business to be managed (or is it dependent on the owner?)
  • Does the business have a competitive advantage?

One Business Brokers can assist you when thinking of buying or selling your business. Contact us today for a free market appraisal of your business.