When Transworld franchise owners need calculate the value of the businesses they represent, they rely on a number of tips and tricks that have been developed by our experts over years of experience. Here’s a quick look at how our franchisees determine the value of a company.

Appraise Any Company Assets

No matter the type of business, it’s important to appraise any assets that may be available to potential buyers. For example, if a restaurant is for sale, take into consideration what the buyer will receive when they purchase the business. Restaurant equipment? Furniture and decor? It’s important to accurately appraise the value of any assets that are for sale within the business. When you become a Transworld franchise owner, our strong training programme can help to prepare you to assess factors like these, among many others.

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Assess Profitability

It’s important for Transworld business brokers to have a good handle on the profitability of the businesses they represent. Assessing earnings statements is a great way to assess how much money a business is bringing in and spending on supplies and labor. The overall profitability of a restaurant is another important factor when it comes to assessing the value of a business. As a Transworld franchise owner, you’ll learn the skills you’ll need to interpret these numbers and to help match businesses with the perfect buyers.

Consider a Fair Market Value

Once you’ve determined the assets and profitability, consider the market value of the business before deciding on a price. Keep in mind that many buyers want to negotiate downward, so setting a price at the higher end of the spectrum is well within the norm. Transworld franchise owners understand how best to arrive at this fair market value, including finding the best multiple to use and looking at prices of comparable businesses.

These are just a few considerations our franchisees take into account when making decisions about pricing a business. When you open a Transworld franchise, you can rely on our expertise to broker a number of different types of business deals, including buying and selling businesses as well as establishing new franchise chains. With over $1 billion in businesses listed, Transworld has the experience and the expertise to help you get your business started on the right foot.

If you’re ready to learn more about what it takes to fairly price a business by opening a Transworld franchise, contact us today!