When you decide to sell your business, the starting point is to determine its value.
Unlike pricing a home for sale, valuing a business is a more complex process. It requires analyzing the business's financials, assets, and operations, as well as the industry and comparable business sales.
You’ve poured years of effort into building your business—when it’s time to sell or plan for the future, understanding its value is essential.
That’s where we can assist you. We conduct detailed evaluations to provide an accurate analysis and determine the ‘most probable selling price’ for your business.
Our Approach to Valuing Your Business
Determining the value of your business is a critical step in planning for its sale, securing financing, or understanding its worth in the market. Here’s an overview of the valuation process we use to provide you with an accurate and reliable estimate:
1. Understanding Your Goals
We start by learning why you need a valuation. Whether you’re planning to sell, transfer ownership, or secure funding, understanding your goals helps us tailor the approach to your needs.
2. Reviewing Your Financials
We examine your financial documents, including income statements, balance sheets, and tax returns from the past 3-5 years. This gives us a clear picture of your business’s financial health.
3. Adjusting for Reality
Businesses often have unique expenses—like owner perks or one-time costs—that don’t reflect everyday operations. We adjust your financials to show the true earning potential of your business.
4. Choosing the Right Valuation Method
Every business is unique, so we use one or more valuation methods to fit your specific situation:
• Income-Based: Focuses on cash flow and profitability.
• Market-Based: Compares your business to similar ones recently sold.
• Asset-Based: Looks at the value of your tangible and intangible assets.
5. Considering Non-Financial Factors
A business is more than just numbers. We evaluate your industry trends, market position, customer relationships, your team, processes in place, plus other intangibles like brand reputation and intellectual property.
6. Final Adjustments
We account for factors like marketability, control, and risks unique to your business to ensure the valuation reflects its true worth in the current market.
7. Delivering Your Valuation
You’ll receive a comprehensive report that explains your business’s value, the methods we used, and actionable insights for maximizing its potential.
Why It Matters
A well-executed valuation not only helps you understand what your business is worth but also positions you to negotiate confidently, attract buyers, and plan for the future.
Ready to discover what your business is worth? Give us a call at the number below or fill out the form to learn more.
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