BizBuySell, a Web site for buying and selling small businesses, announced Aug. 28 that business owners and buyers can find out the value of a business at no cost by using its "Valuation Report."
The new feature allows users looking to sell an existing business, or hoping to buy a business, to determine a fair asking price based on factors such as business type and location, according to a press release issued by BizBuySell.
"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. "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."
BizBuySell's free Valuation Report analyzes actual comparables of the site's 48,000+ current businesses for sale and over 30,000 recently sold businesses, providing business owners and buyers insight into a chosen business industry.
The report is customizable, so users can choose factors such as geographic area, gross income and cash flow ranges to analyze the worth of a business. Business owners and buyers can even include specific businesses for sale or sold on the site out of over 50 industries.
As an example, if a convenience store owner in North Carolina looking to sell his or her business wanted to find out the average asking price for similar establishments, the owner could run a report based on comparable businesses for sale on the site. The report breaks up information into a Gross Income Analysis and Cash Flow Analysis, as well as a listing of the specific businesses used as comparables in the report. The report generates a suggested asking price for the business using both gross income and cash flow multipliers.
Users can refine reports as many times as they wish by changing the scope of the location, gross income, cash flow and asking prices of the businesses analyzed.
BizBuySell was founded in 1996 and acquired by LoopNet, Inc. in 2004. LoopNet operates a commercial real estate listing service online.