Business Valuations

How do the experts value businesses?  What makes one more worth more than another?  

Personally, YOU know the amount of money, blood, sweat and tears that you have invested into your business from day one.  So how do you know if the price that you have in your head is one that will interest buyers and make you a tidy profit?

Quite frankly, it’s much too complex to explain exactly how a full business valuation is done in a simple email and there are many, many factors that influence a business valuation.

So, we are just going to talk about the basics here but offer you three ways that you can learn more about what YOUR business is worth!

Proper business valuations are basically defendable estimates of value.  

Some of the keys to completing strong valuations are:

  1. Understanding the local market and industry conditions.
  2. Determining Full Owner Benefit (or SDE) of the business.
  3. Identifying Key Factors attributing to the value of the business.
  4. Calculating REALISTIC multiples to apply towards gross sales and net profit.

Understanding local and industry conditions and developing the proper calculations are not easy to do.  It often requires assistance from your accounting professionals as well as expertise from your other team members in order to establish an accurate business valuation.

Your best bet is to use the Value My Business button at the bottom of this page so we can schedule a time to help you figure out the value of your business.  When you complete the form, you can request one of the following three options:

  • Broker’s Opinion of Value. This is a FREE basic business value estimate using information that you provide about your financial business performance that can help you determine if you are in the right ballpark on your figures.

 OR

  • Market Assessment of PriceFull 15+ page detailed report determining your business’ Most Probable Selling Price based on privately held data from resources such as BBF and PeerComp. This is a great tool to help your buyer also understand your business value. This assessment is highly valuable and a must have to get ready to go to market. Also, even if selling is years away, smart business owners find that getting a Market Assessment of Price helps them get to the price they need later. To reach a goal, you need to know where you are starting from.

OR

  • Full Business Valuation.  If you’d like to go further and delve deeper into a full business valuation, we can put you on the schedule for a full business valuation with one of our business valuation experts. These are used for qualifying SBA loans and sometimes required for wills, partner dissolution and other legal matters.

Once you have a business valuation done, it is a valuable tool to help you  understand what your business is worth in your local region and within your industry not to mention, it will help you get your business sold.

Contact us today to help you determine the financial value of your business.

Value My Biz