Why Business Valuation?
The business valuation (sometimes referred to as a business appraisal) can
be used for many reasons.
The top 5 reasons to obtain a business valuation are:
1. Partner Dispute / Divorce / Litigation
2. Obtaining Financing
3. Preparation For Sale of Business
4. Gift Tax / Estate Tax Planning
5. Periodic Assessment of Marketplace
How Do We Establish Value?
A business is ultimately worth what the market will bear - it is worth the highest price a willing Buyer is willing to pay! Although we look at many valuation methodologies, there are four that are most widely accepted:
1. multiple of earnings / cash flow
2. comparable transactions analysis
3. asset-based valuation
4. discounted cash flow analysis
Valuation experts, mindful of the strengths and weaknesses inherent in each approach, will value a company with more than one of the methodologies, simultaneously comparing results to determine a correct valuation. Included in the process is an analysis of growth potential, risks, industry factors and other variables that may impact the value of an enterprise.
How Do We Get Started?
All businesses are different. Some businesses keep great books and records - others may not. We can work within any situation.
Contact
us for more information.
