Business Valuation Services

 A business valuation is a process of calculating a business’s economic value by analyzing its different departments. The most common approach to evaluating a company can include a review of financial statements, and comparing competitors to get a good understanding of how the business matches up with others in the market. When it comes to calculating the perceived value of a business, there are numerous ways to come up with these figures: market capitalization, liquidation value, book value, etc. It is wise to consult business brokers with the correct accreditation, to not only come into a business negotiation with the correct numbers but also have the best chance of an accurate final valuation.

Typically, business valuations occur when a business owner is looking to sell, merge with, or buy a business. There are also instances when having the economic value of your business could be one of the steps in succession planning (analyzing who will take over a company upon retirement, death, or disability). There are many benefits to evaluating a company as a business owner. There is a better understanding of the assets & liabilities or even using ownership interests to attract top talent. These benefits are dependent on where the business owner is on their journey and should be consulted with trusted parties before going about this process.

The Four Premises of Value

• Going concern - The business will continue to operate.
• Assemblage of assets - all I said are valued in place. However, not in current use and not as a part of an ongoing business.
• Orderly disposition - assets will be sold individually and there will be a reasonable time in which to complete a sale.
• Forced liquidation - assets will be sold individually and there will NOT be a reasonable time to complete the sale.
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Business Listing Factors

• Cash from cash returns: 24 - 36 months
• Cover existing business debt
• Earn the buyer a living