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How much is your Business Worth?
A recent unpublished SPARDATA study of over 2,000 business owners found owners often misjudge the value of their businesses by 50% or more - sometimes by millions of dollars!
Why Conduct a Business Valuation?
Establish a Listing Price that maximizes value to the business owner Assemble and package all the information necessary to support the value of the business
Prevent “Lost Deals” caused by delays in researching the information required by the Buyer Provide the back-up documentation required for the seller or buyer to obtain financing
Allow the buyer to substantiate the value to his legal, accounting and professional advisors
Enable professional advisors to do a better job of structuring the transaction
Identify issues that need to be addressed in order to better position the business for future sale
Facilitate the Tax and Estate Planning by the business owner
Sell the business Faster - The International Business Brokers Association has indicated that Businesses sell 35% faster when an investment is made in a Business Valuation.
Types of Valuations Offered
Snapshot Valuation* $950
The Snapshot Valuation is a restricted use valuation intended for small companies with sales less than $250,000. The report is approximately 11 pages and provides only a brief synopsis of how the valuation conclusion was determined. The basis of this valuation is a market comparison with like companies within an industry.
Value Analysis - $2000
The Value Analysis is a restricted use business valuation designed specifically for the “main street” business with sales of $1,000,000 or less. The report is intended for “asset sale, financial buyers” and is approximately 40 pages providing only a summary of how the valuation conclusion was determined. The basis of this valuation is discretionary cash flow, since most main street businesses are bought and sold on a multiple of cash flow. The value considers primarily historical and current financial performance and very little time is spent with the Balance Sheet. The report contains the following (partial list of exhibits):
Historical Income Statement
Adjusted Cash Flow Statement
Comparable Sales (Market Approach)
Various Graphic Analysis
Summary Review of Each Valuation Approach
Valuation Conclusion and Justification
Limited Formal Valuation - $4,000
The Limited Formal Valuation is a restricted use business valuation intended for the standard small business with sales between $1,000,000 and $7,000,000. The report is intended for “asset sale, financial buyers” and is approximately 70 pages providing a detailed review of all aspects that were considered in determining the final valuation conclusion. The bulk of the report is financial analysis and the valuation conclusion is supported on much more detail. In addition to reviewing the company’s historical and projected earnings, the report also contains a detailed review of the Balance Sheet. The report contains the following (partial list of exhibits):
Historical Income Statement
Adjusted Cash Flow Statement
Complete Financial Statement Analysis
Common Size Analysis
Ratio Analysis
Industry Analysis
Economic, Regional and Industry Analysis
Comparable Sales
Detailed Description of Each Valuation Approach Considered and Used
Valuation Conclusion and Justification
Discounted Future Cash Flow Analysis
What-If, Hypothetical Transaction
Proof of Valuation
Valuation Matrix
Merger & Acquisition Valuation - $6,500+
The Merger & Acquisition Valuation is a comprehensive business valuation for transactional purposes and is developed in accordance with the Uniform Standards of Professional Appraisal Practice (USPAP). This is a stock valuation and is intended for the middle market business with annual revenues in excess of $5,000,000, businesses that are expected to sell for more than $1,000,000, strategic acquisitions of niche businesses, and generally any business with significant growth expected in the future. The basis of the valuation is focused on future earnings and the selection of guideline companies comes from both the private and public markets. This report is a completely customized report and the number of pages can range from 30 to 200 depending on the information that is used to support the conclusion.
IRS Revenue Ruling 59-60 – Call for Pricing
A USPAP governed valuation developed for litigation focusing on US Court Reviews, Cited Court Precedents, and in-depth analysis and research of minority and marketability discounts. Intended for Estate Tax, Gift Tax, ESOP’s, Divorce, and any situation requiring litigation. This valuation is normally used when the value of the stock is in question (minority or majority interest).
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