Buying or selling a business requires setting a realistic value for the business. After all, as the seller, you want to get a fair price that accounts for all of your assets, hard work, and business potential. Likewise, as a buyer, you want to get a fair price that accounts for the risk you’re assuming. Both buyers and sellers need to know what the business is worth. This is accomplished through business appraisal.
http://www.thejosephfoundation.com/valuing-business-whats-involved.html/
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