BizBuySell, a Web site dedicated to buying or selling a small business, now allows business owners and buyers to find the value of a specific business for free using the site's "Valuation Report."
The new feature allows users -- whether they wish to sell or buy -- determine a fair price based on factors such as business type and location. The program is exclusive to BizBuySell and has not previously been available for free, the company stated.
"The value of a particular business is something almost all business owners and buyers are curious about, but have not had this level of access to in the past," Mike Handelsman, general manager of BizBuySell, said in a statement. "By using the free Valuation Report, all business sellers and buyers now have a place to start, which greatly simplifies the process of selling or buying a business."
The free Valuation Report analyzes comparable data on the site's more than 48,000 current businesses for sale and more than 30,000 recently sold businesses, providing potential sellers or buyers insight into a specific industry, the company stated. The report can also be customized, allowing users to specify geographic area, gross income and cash flow ranges.
BizBuySell gives an example of a convenience store owner in North Carolina, who is looking to sell the business, and wants to find out the average asking price for similar establishments. The owner could run a Valuation Report based on comparable businesses for sale on the site. The report then breaks up information into Gross Income Analysis and Cash Flow Analysis, as well as a listing of the specific businesses used as comparable data in the report. The report also generates a suggested asking price for the business using both gross income and cash flow data, according to the company.
In addition, users are not limited to refine reports several times by changing the scope of the location, gross income, cash flow and asking prices.
BizBuySell also provides current business owners who might not be thinking of selling a source to find the value of their business.
"Before, users had to be relatively committed to buying or selling before spending money to value a business," Handelsman said. "Now, for the first time, people in all stages of the buying or selling process -- from casually interested to actively looking -- have access to this valuable and hard-to-find information."