If you are looking to get company valuation India done in order to sell your company there are a few things that you need to keep in mind first. To begin with, you need to define your priorities in this regard. What do you want from the sale? You need to be very clear of that. This is important because this is what would help you make all the other decisions that have to be made as part of the process. In order to do this you need to be honest as well as realistic.
Who should you sell it to?
You can always approach business valuation companies for but first of all you need to have a clear idea of who you would like to sell your company to. What kind of buyer are you looking for? You need to decide this after you have determined your priorities from the sale. The broad options are:
- Strategic investors
- Institutional private equity groups – they are also referred to as financial buyers
- Angel investors, venture capital firms
- High net-worth individuals and family offices
- Friends and family
What would you be happy with?
When it comes to company valuation for the purpose of sale, this is also one factor that you should be clear about. Quite often you may get caught up with the kind of numbers that you initially get for your business. But this does not mean that you overlook other important factors such as the following:
- deal structure
- net proceeds after paying taxes
Make sure that you do not face any financial issues with your seller even after the sale has been finalized.
What is the right time for sale?
It is very important that you get the timing of your sale right. This is because this timing would have a major effect on the value that your company gets in the market. Ideally a seller would like to wait for a time when the economy is thriving, so that valuations are high and buyers can borrow money with ease if needed. However a financially sound company would find buyers even in other economic climates.
The importance of being calm
The main aim of such transaction is to make sure that you are on the same page with the buyer. You already have an emotional bond with your company and a vested interest in the same. It is very important that you are also able to understand what the buyer is thinking of the deal. This is one process that can fall apart and there is a lot that needs to be taken into account.
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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.