What is My Business Worth? Selling in New York & New Jersey.
When a New York or New Jersey business owner begins thinking about selling a business, the first question is almost always the same. It is: How much is my business worth?
There isn’t a single answer. The value depends on profitability, the industry, customer contracts, leases, and even how dependent the company is on the owner. Growth potential and timing also make a difference.
Who Helps Determine Value?
A lawyer plays an essential role in protecting your interests in the sale. However, your business attorney will not tell you exactly what your business is worth. That conclusion requires a financial analysis. Most sellers benefit from working with:
- Business brokers, who understand current market multiples and comparable sales.
- Accountants, who can prepare clean, accurate statements that buyers will trust.
- Valuation experts, who apply recognized methods and market data to arrive at a defensible figure.
To reach a valuation, these professionals will typically review recent financial statements, tax returns, customer contracts, leases, vendor agreements, and growth projections. They may also compare your business to similar companies that have sold recently in New Jersey or New York.
The Lawyer’s Role in Boosting Value
While lawyers don’t set the price, a good business lawyer can help sellers prepare for a stronger valuation. One of the most valuable contributions is reviewing existing contracts. These contracts include those with customers, suppliers, landlords, and employees. The lawyer identifies issues that could reduce buyer confidence.
Renegotiating a lease can make the business more attractive to prospective buyers. Updating outdated agreements also helps attract them. Resolving problematic provisions before going to market is beneficial too. Addressing these issues early can increase certainty for buyers and help support a higher sale price.
The Takeaway
Every business is different. By working with financial professionals on valuation and having a lawyer review and strengthen contracts in advance, New Jersey and New York business owners selling a business can approach the market with confidence. This combination of financial clarity and legal readiness is what makes a business more appealing to serious buyers.
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