A valuation is essential prior to starting the marketing process. The purpose of a valuation is two-fold. First, it lets you know the likely market value of the business. If the value doesn’t meet your expectations or needs, then you shouldn’t proceed with the process. And second, it prevents you from accepting a too low price and leaving money on the table.
Have a formal valuation done, either by your intermediary or an outside business valuation specialist. Whether or not the intermediary prepares the valuation, it is important to get the intermediary’s buy-in to the value.
The valuation documents should not be shown or disclosed to the buyer candidates. To do so would establish an asking price and limit your upside. Let them come to their own value conclusions.