Our Company offers in house Business Evaluation Services as well as third party contacts providing in depth business descriptions and ongoing business valuations to owners of private businesses or potential investors. The intent of this activity is to afford clients independent, professionally prepared documents and opinions to be used in negotiations involving the transfer of ownership interests, recapitalization or other business purposes.
A company’s value depends on many factors such as cash flow, asset values, financial history, condition of equipment and premises, favorable lease terms, competition, location and the economy. By analyzing your business and comparable sales in your industry, our associates can advise on the proper pricing strategy specifically targeted to your business. For larger businesses we recommend a third party valuation.
Buyers are much more likely to pay top dollar for a business when documented evidence supports the asking price. Most financial institutions insist on a business valuation before they will consider financing.
Our valuation process begins with our intermediary recasting your financial statements to reflect non-reoccurring expenses and prepares a Market Value Analysis. Upon review of the Market Analysis, our associates will advise if a professional computerized analysis will suffice or if a third party business valuation is recommended. If the decision is to use a third party valuation, our associates will then outline and coordinate with the third party Valuation Analyst.
Without a recent valuation, a business owner must be prepared to defend his opinion of value. Experienced buyers will place little credibility to a value arrived at by an owner’s accountant. Therefore, a properly prepared valuation report is a required tool to obtain a fair market value for your business.