Valuation Guide
The Need For a Valuation
- Necessary for future planning, whether it be retirement, new ventures, etc.
- Necessary when seeking capital infusion from outside investors and lending institutions.
- Necessary when considering sales, mergers, acquisitions, or share swaps.
- Necessary for partnership changes and exits.
- Necessary in divorce negotiations settlements.
- Necessary when setting up some Employee incentive or ownership programs.
- Helpful in increasing the Value of Your Business. What is measured improves. It can tell an owner if efforts need refocusing or, even better, if the company is headed in the right direction.
- Helpful in evaluating tax strategies.
- Helpful in insurance planning. Nearly three-quarters (70%) of small businesses do not have adequate insurance coverage.
The Strength of Our Valuation
BizEquity, the company we have partnered with to perform our valuations, has created a cloud-based platform and operating system for conducting business valuations on private companies.
- They have filed over 61 patents and inventions for the process, with a total of 7 granted patents currently.
- It has been used to value over 30 million businesses.
- The platform was created with over 15 million dollars and 600,000 man hours over a 10 year period.
- It streams multiple types of data from multiple sources as input to the algorithm.
- The algorithm is based on professional business valuation standards and methods.
- All multiples, discount rates, and cap rates are industry-specific and size adjusted.
- Our system will produce valuation estimates that are generally within (+/-) 10% -15% of the mean value expected if one were to hire 5 professional appraisers to value the same company with the same identical facts.
The Process
There are 7 steps to collect basic financial data needed to perform a Valuation.
All items can be found on corporate tax returns and current balance sheet
7 input steps:
- Basic Information about the business and the owner
- Company Profile including size, industry, location, etc.
- Income & Expenses directly from the last 3 years tax forms
- Assets
- Liabilities
- Growth projections / potential
7. Operations information
The Result
Our full Valuation report consists of29 pages of useful information. This can help you, the business owner, understand the value of your business like never before. The report includes the following:
- Valuation Overview and guide
- 4 Valuations – asset, equity, enterprise, and liquidation
- How it ranks within its NAICS code nationally and within its zip code.
- In depth financial summary
- Key Performance Indicator explanation and overview
- 12 Key Performance Indicators for your business. These show how your business stacks up against others in your industry.
- A report showing how businesses of similar value are insured.
- Report and BizEquity credentials
The Options
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COMING SOON
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Link to our Google Reviews
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