Working ahead – the value of pre-listing an appraisal
If you’re a business owner considering listing your business for sale with a broker, you may think it’s common and most convenient to get an appraisal of your machinery and equipment as part of the eventual acquisition process.
Savvy business owners, however, who prepare a full M&E appraisal prior to listing their business for sale with a broker can positively impact the sales process in several ways:
A pre-arranged M&E appraisal gives confidence to a potential buyer that the seller is organized and has a strong grasp of their assets.
It leads to an overall more efficient sales experience by speeding up the buyer’s collateral financing process.
It provides the seller / business owner with a strong opening position for purchase price allocation – and it precludes the buyer from expecting an unreasonably high-depreciable basis as part of the negotiating process.
It gives the buyer and the seller matching appraisals for the post-acquisition purchase price allocation without having to start from scratch or to reconcile separate appraisals. Again, this saves time and helps make the process quicker and more efficient.
Thinking about listing your business for sale? Don’t wait for the acquisition process to begin to secure your M&E appraisal. Instead, benefit from a pre-listing appraisal to give yourself a smoother and faster negotiating and acquisition process.