(This is the 2nd in a series of articles on how owners can identify and close the value gaps that exist in the sale of their businesses BEFORE entering into the actual sale process. Future articles will focus on the identification and options where gaps can exist and how to achieve alignment between perception and reality.)
When it comes to the sale of a business, determining its value can be a complex undertaking.
For a buyer, value is in the future and is almost always driven by financial considerations. It is represented by the likely return (discounted by the degree of risk of achievement) associated with the purchase investment.