Providers of online business valuation tools for small firms are hoping to cash in on the coming boom in businesses being put up for sale. As baby boomers age, small businesses are expected to go on the block in record numbers, according to a report by Fox Business. These firms often can’t afford traditional valuation services, so they may turn to online tools to value their firms.
The Federal Reserve predicts 7.7 million businesses will be bought and sold in the next 10 years, potentially representing $3 trillion in value, Michael Carter (BizEquity.com) said in the report. According to Carter, small companies often end up undervaluing their businesses by 30%. BizEquity.com is a provider of online valuation tools. BodeTree.com, which partners with Intuit in small business services, also offers an online valuation tool aimed at small business.
What has been your experience with these online valuation tools? Have they taken business away? Have you ever had to pick up the pieces for a client who used them? Send your comments to the editor here.
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