BUSINESS VALUATIONS
Business Valuations
Before you make any major business decisions, you should know the true value of your company – it’s a lot more than just dollars and cents!
How is value determined?
The value of your business may be more than imagined! To know the value of a public company, you can multiply the amount its shares trade for on the stock exchange by the total shares outstanding. Non-public companies are significantly more complex, as there’s no established market for private company shares. It’s also derived from important intangibles you possess like:
You may be surprised to learn your intangible assets are worth far more than your tangible assets and these help indicate the profitability of your company long into the future.
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Your customer list
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Trademarks
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Copyrights
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Distribution rights
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Management team
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Non-compete agreements
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Physical locations
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Special processes and procedures
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Brand recognition
If you are like most entrepreneurs, the preponderance of your wealth is tied up in your company; it’s your largest asset. Unfortunately, most entrepreneurs don’t have an accurate idea of how much their business is worth. By obtaining a business valuation from a Certified Valuation Analyst, you can plan for the future and set yourself up for success.
Knowing your business’s value is important
Value determinations are needed to accurately calculate:
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Buy/sell agreements
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Initial public offerings
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Obtaining financing
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Split-Ups & Split-Offs
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Dissenting shareholder action
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Succession planning
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Estate tax upon death
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Exit strategies
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Charitable contributions
Make the complex clear
As a past CFO and certified Valuation Analyst with specialized training and experience, I really understand business and how to evaluate a business’s value. But I also go above and beyond to make sure you understand the results. I’ll carefully explain what the financial statements mean, show you how you compare to your competition and project future growth – all while accomplishing your financial objectives.
Considering buying a company?
It’s important to assess a company’s value and consider the following before purchasing:
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The company’s performance
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Cash flow (what it is now and what it’s likely to be in the future)
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Compare this opportunity with other like investments (make sure you’re comparing “apples to apples”)
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Intangible assets (i.e. employee agreements, patents and licenses) – not just “hard” tangible assets (i.e. buildings, furniture, inventory and accounts receivable)
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Its risk – ask yourself, “how risky is this business and the industry?”
As Certified Valuation Analysts and members of the National Association of Certified Valuators and Analysts, these are just a few of the tactics we use to determine value.