Valuation Scam: It Always Costs Money…Yours!

When you open up a new business, you take a risky step. Not only do you have a new string of worries or stresses, but you also have to be aware of certain scams. Let’s say that your business is established and doing well. You may get a fax from someone saying that they can send someone down to you to tell you exactly what your business is worth and what you can sell it for. Although there are reputable people that do this, this scam is out there to just swindle you out of money.

When someone approaches you about evaluating your business you should look a little deeper into his or her credentials. These scammers would send someone to your place of business basically to put on a show. The worse part is that they would charge you for this “service.” They would also make it seem like you are doing them a favor and tell you to pay say a thousand dollars for a two-thousand dollar service. Business owners think they are getting a deal and often agree to this. This operation is pretty accurate and would have the person look like they know what they are doing. After they get paid, they would tell you that they would be in touch and see if they can broker a deal with someone so you can get paid. But, they leave forever. You will never see these scammers again.

This scam is easy to fall into and it is also easy to avoid. You could avoid it by just checking credentials with whoever contacted you and asking them to provide referrals. You could also do research online for this type of service and not trust a random phone call of email. As always, stay alert and scam free!

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