HOW DO THE EXPERTS VALUE BUSINESSES?
WHAT MAKES ONE BUSINESS WORTH MORE THAN ANOTHER?
Ever wonder what your business is worth? Do you really want a great firm that’s been trained by the national Association of certified valuation analyst (Nacva.com)? Business valuations are an important part of the sales process. Get the best Tampa business valuations today. You should always know what your business is worth.
Who knows your business best? Personally, YOU know the amount of blood, sweat, tears, and money 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 note here. Believe me when I say there are many, many factors that influence a business valuation.
So, we are just going to talk about the basics here but later in this post, we will 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:
- Understanding the local market and industry conditions.
- Determining Full Owner Benefit (or SDE) of the business.
- Identifying Key Factors attributing to the value of the business.
- 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. It also may involve expertise from other team members to establish an accurate business valuation.
TYPES OF VALUATIONS AT LEGACY VENTURE GROUP
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 Price. Full 15+ page detailed report determining the Most Probable Selling Price of your business. Prices start at $2,500 and are dependent upon the complexity of your business. This will be based on privately-held data from resources such as BBF and PeerComp. This is a great tool to help your buyer understand the value of your business. This assessment is highly valuable. It is a “must-have ” as you get ready to go to market. Even if selling is years away, smart business owners like you, find that getting a Market Assessment of Price helps them get to the price they need later.
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. Prices start at $4500 and as the Market Assessment of Price, the final cost is dependent upon the complexity of your business. These types of business valuation 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 that you can use to properly establish a price for your business.
Contact us today to help you determine the financial value of your business.