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Is this the latest "Scam"
Business Valuations
Lately I have been getting a lot of faxes and letters from companies offering to carry out a valuation of my Business.
I presume they send out a "Consultant" who looks at what we do then arrives at a highly inflated price as to what the business woud be worth if we should decide to sell it.
In return for this expert information I presume I will have to shell out a huge wad of cash in consultancy fees
Is that how it works 😕
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8 Replies
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They do that here Phill, but it costs nothing for the advice.
The do the hard sell, get you all excited about making a motza on the sale of your business then get you to sign up for an exclusive selling agency. The payoff comes when you sell for a pittance, but they take a huge fee that is agreed to when you sign up. You think they’ll get top dollar, but they really only get whatever they can convince someone to pay.
If you decide, after the cooling off period has expired, to withdraw the business from sale, you have to pay the fees etc, because you effectively break the contract, and thats the penalty clause in very small print….
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On a slightly different tack……..
Why would we want our businesses valuing?
I’ve been thinking about this for the last couple of days and come to the conclusion that we wouldn’t be able to sell them anyway. In the current economic climate no bank is going to lend a potential customer the money to buy, except at interest rates in the high teens, or more, and with ridiculously high deposits, which would all combine to make it non viable anyway.
Sorry folks. No matter how good, our businesses are practically worthless for the time being, so heads down, and keep working. I reckon about five years. 🙁
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I have absolutely no intention of trying to sell my business. These are entirely unsolicited faxes and letters I have been getting. And it’s only been happening recently – I have never had these before which is what makes me comment "is this the latest scam".
Are any others getting these?
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I’ve had a few over the years, but not an excessive amount.
I’ve always put it down to business agents trying to drum up a bit of trade. The same as we do. 😀
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had 2 recently and apparently sign business are in big demand at present.
er so they say.
any way basil comes out to play with these phone calls.
can i speak to the person that deals with your franking machine.
sorry Frank is not at his machine right now plaese call later.
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I’ve had it a good few times "on-line" for UKSB. I assume it is happening much more worldwide via the net. Only a matter of time before they start the faxing and cold calling…
I looked into buying shares a few years ago, within weeks i was inundated with calls from every country under the sun via "phone line" wanting to offer tips, advice, even manage a budget on buying shares on my behalf. it was bizarre… funny how it all stopped as quick as it started. 😕 -
Well I haven’t had any at all Phill…………..Hmmm wonder why that is???? :lol1: :lol1:
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I think you are right John. I have a very good business, but its worth very little on the open market because the business is me. It would only have a value if I went with it, and presuming I sold, I’d be wanting to get out, not let someone take over my business and employ me.
My cousin is trying to sell her sign business. She turns over heaps more than me, but she is the business. Without her, there is no guarantee the contracts will stay with the new owner (just like my clients) so everyone is waiting for her to close, and the contracts will then be open to any new bids.
Sad really. She is selling because her dad is dying, and she has lost interest, because they have worked together for years…. much like me and dad.
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