A recent studyhas been released by The Social Science Research Network which examined the value corporate acquirers are putting on accounting methods and techniques.  The study found that private business buyers put much greater value in private companies when financial records were being audited by a ”Big 4″ accounting firm:

“……….we find that enterprise values of private firms who have a Big 4 auditor are 19% to 25% higher than firms without a Big 4 auditor.”

If you are a business owner considering the future sale of your business, short or long term, then you should seriously consider hiring a Big 4 firm as a measure of checks and balances for auditing financials.  The Big 4 are Pricewaterhouse Coopers, Deloitte Touche Tohmatsu, KPMG, & Ernst and Young.  This group was once the Big 8 before a series of M & A activity.

Identifying fair market value of a business in order to identify a proper asking price is one thing.  Showing interested buyers that your financials and accounting records are legitimized by a Big 4 auditing firm is another.  Once you have a business valuation conducted, these extra sprinkles are sure to have a positive impact on price negotiations and buyer interests…….in your favor!