Despite the current economic conditions, there are still plenty of transactions taking place. The issue is the validity of the price of the business. It used to be that bank estimates were sufficient, but no more.
In August of 2008, the SBA published new SOPs (Standard Operating Procedures) which mandate independent third-party appraisals performed by accredited appraisers in most circumstances. Chick here to view the SOPs (read pages 175-183)
Buy123 will give you an idea what the business is worth, the banks, SBA, and lending institutions who will give your buyer the money won’t take our word for it (we have a conflict of interest).
The US Congress has authorized the Appraisal Foundation as the source of appraisal standards and qualifications. These standards are called the Uniform Standards of Professional Appraisal Practice (USPAP). In most cases we will recommend an appraisal be performed by an independent USPAP certified Evaluation Firm in compliance with these mandates. You can get your own, or we can subcontract it out for you (at substantial discounts off retail).
Here’s a great article from Inc Magazine on Appraisals