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Has anyone valued an 8a certified company. If so, any suggestions on the methods involved?Thanks

Gregory Gill

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The BAF Group LLC

From my perspective, Valuing is only a problem when you are dealing with a potential Buyer that is not 8a qualified. (Then is it not really an issue of Valuing, as it is a matter of how low an offer you might accept.) The non-8A Buyer will want to take a look at what contracts you may have that are solely derived from your own Company's 8a status. The non-8a Buyer will want to discount the value of those contracts, because theoretically he will lose them when he assumes ownership. Everything is about alternatives: You can either sell the business to a non-8a Buyer and take a hit with a discount, or you can wait and target an 8a Buyer, which can narrow the heck out of your market pool.

There are a couple of things you can do to broaden your alternatives, but that is the key issue.

Jul 1, 2011

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