Know what you're selling

Price of the business is usually made up of three components

Intangible assets.

The future earning potential of the business reflective of historical earnings

potentially including intellectual property (IP), right to products or

services, benefits of a lease, contracts, techniques and procedures as well as

goodwill.

Tangible assets.

The fixtures, fittings, plant and equipment used by the business to generate its

income. This component is normally calculated according to its depreciated

book value.

Stock.

Stock purchased by the business for resale or manufacturing purposes. It is

valued at the historical cost price. An allowance may be made for old or

obsolete stock.

For a full appreciation of the business Sales process please download our free ebook - link below.