If you are looking to buy or sell a business, here are four important qualitative factors to consider and include in its value. A business valuation can benefit from understanding whether a customer base is steady or transient. Changes in customers' psychographic traits should be considered in business valuation but are often difficult to predict and quantify. Niche markets and fad products are especially vulnerable to changes in customers' psychographic traits; thus, a business valuation should consider to what extent the business could withstand psychographic shifts. By looking at all aspects of a business, sellers and buyers can account for qualitative factors that affect a business valuation and strike a deal that is fair and advantageous for all.

Source: Forbes December 03, 2019 13:41 UTC