Buying or Selling a Business
Buying or selling a business is a serious task and considerable due diligence is required on both sides of the deal. An important part of buying or selling a business is to have a clear understanding of the entire fixed and capital assets included in the purchase or sale. From the sellers perspective having a complete inventory of those assets is vital if they are to convince the buyer and his team it is a sound and viable business. Assets are typically listed by equipment type, locations and quantities. Included in the listing is the appraised value of items that make up a portion of the total sale price of the business. It is much preferred, as a prospective buyer, to have complete knowledge of all that is included in the purchase agreement. Surprises can be costly.
What constitutes an asset varies from company to company. From Centennial’s experience, assets may include all the company’s office furniture, operations equipment, computers and buildings or in the parlance of a business broker, the FFE (furniture, fixtures and equipment). One of our customers has, in addition to all office and operations equipment, assets 20′ wide and 80′ long; spread over a million square feet of floor space. Within an asset may be capital improvements updating (extending the useful life) and improving the manufacturing process. Each improvement qualifies as an asset.
Centennial Associates, Inc. catalogs each unique item in an inventory, conducts a physical inventory assuring all is included. Utilizing our unique Bar|Scan® Bar Code Asset Management System we collect equipment types, locations and quantities. In addition, working with our associates that are Certified Equipment Appraisers, we’re able to provide appraised values and, if appropriate, replacement costs as part of our comprehensive report.
For you the buyer, you know exactly what you’re buying. For you the seller, you’re comfortable knowing your business is fairly priced.
For a consultation, please call us today 585.671.0544.
“If you wish to buy or sell a business check out Business Brokers New York LLC… for equipment and machinery appraisals please check…Certified Equipment Appraisal Services