Know the Honest Value of Your Propane Business with Experts

1. Know the Honest Value of Your Propane Business with Experts Perhaps you are thinking about selling your propane business or simply want to know what your net worth might be, then here’s a question you might be asking: What is the value of my propane company? Determining the real worth of your business is important for many reasons—such as if you’re looking to cash out and retire or secure a bank loan to expand your operations. Having a firm grip on the true value of your propane business ensures that you are not shortchanged. The best way to get an honest answer is to consult with assessors who have been in the propane business for decades. Never rely on a bank’s evaluation alone, as they are notorious for undervaluing businesses for their own advantage. You can’t rely on the evaluation of the IRS, either, because they may give you a higher valuation in order to tax you more if you decide to sell your business or leave it in your estate for your heirs. Consulting with experts in the propane business industry is the best way to get an honest answer on the value of your propane company. Always talk to someone who knows the propane industry. You might be wondering: Is the value of my propane company enough for me to retire on? This is a question you need to ask yourself especially if you are treating your business as your retirement plan. Without a proper and honest assessment, you won’t be able to make an informed decision about your future. Are you selling your propane business and find a prospective buyer’s valuation to be questionable? Then it makes sense to seek a third-party assessment. It won’t hurt to pitch your business to several investors so you can compare their evaluations. The best acquisitions are mutually-beneficial; the buyer should always be transparent about the purchase structure and should be willing to work closely with you until a fair agreement is reached. Knowing the honest value of your propane business can help you make a smarter decision about the next step in your life—whether that means holding on to your business, expanding it, passing it on to the next generation, or selling it and enjoying the early retirement lifestyle. If you’re interested in selling your propane company, remember to look beyond the numbers. You also have to think about how the new owners will honor your legacy. Find out what they plan to do with your employees, or how they plan to serve your loyal customers going forward.