Have you ever wondered what your business is worth?

Many business owners believe the value of their business is some metric of net profit or gross sales multiplied by an industry rule of thumb.  The application of industry rules of thumb often results in a value determination that differs greatly from the actual value that could be determined by a qualified valuation analyst. 

A business valuation is a formal, analytical process used to determine the economic value of a company or a specific ownership interest in that company.  A valuation evaluates the business's financial performance, assets, liabilities, cash-flow potential, market position and associated risks. 

Valuation professionals apply recognized methodologies, such as the income approach, market approach and asset-based approach to arrive at a well-supported estimate of value.  A valuation analyst must acquire a thorough understanding of every aspect of a company's dynamics, including: management capabilities, company strengths, weaknesses and vulnerabilities, the competitive market, along with industry and economic influences.   A true value of a business enterprise requires in-depth analysis of two primary components that make up value: tangible assets such as real estate, machinery etc., and various intangible assets such as good will, copyrights or non-compete agreements.

After the thorough analysis of a company's dynamics and financial health the appropriate methodology is selected among many accepted in the valuation industry, and apply a series of calculations and formulas to arrive at the ultimate conclusion of value.  The process is complex and requires a significant amount of time. 

REASONS FOR BUSINESS VALUATIONS INCLUDE:

• Mergers & acquisitions

• Buying or selling a business

• Partner buy-ins or buy-outs

• Estate and/or gift tax return requirements

• Divorce proceedings

• Shareholder/partners disputes

• Succession and exit planning

• Financial reporting

• Funding or capital raising

• Obtaining key-person insurance