ASK THE EXPERTS - (excerpt from Gannett Poughkeepise Journal Sunday Paper) Apr 4, 2004 Appraiser can help set firm’s selling price Question: I’d like to sell my business, how do I go about evaluating its worth and determining price? Answer: There is no one formula for determining the value of a business. Fundamentally, the business’ value is driven by the economic benefit available for its owners, usually measured as the amount of cash it can generate. The more economic benefit your business can generate, and the more reliable that economic benefit is, the more valuable your business worth. Also, particularly for small businesses, the easier it is to transfer skill and knowledge to a new owner, generally the more valuable a business can be. Your best bet in determining your business worth, however, is to engage a qualified and credentialed business appraiser who can walk you through the valuation process. You need to be concerned about not only what your business is worth, but what factors drive its value so you can work to maximize that value. The mechanisms to value your business are related to not only your industry but to the internal systems or niche you may have in the market place. The American Society of Appraisers Web site - www.appraisers.org - gives you an opportunity to search by type and location appraisers that can help you. Another important aspect of selling your business is to get your financial documentation in order, since any buyer will want to review the financial performance of your business. Your accountant can be a helpful resource in obtaining the needed documents. Typically, these include tax returns, financial statements, aged accounts receivable listings and a listing of the company’s fixed assets, with an estimate of their replacement value. As Steven Covey wrote in the "Seven Habits of Highly Effective People," begin with the end in mind. Whether you are a business owner thinking of selling, succession planning, or giving your business to family or others, put a plan into action to evaluate your worth and plan your future. Deborah Bailey-Browne is head of the accounting firm of Deborah Bailey-Browne CPA & Associates in Wappingers Falls.