The number of business valuations involving private law practices has grown steadily in recent years. The two main types of situations calling for a law firm appraisal are these: Transactional such as the law practice sale, merger or spin-off. Legal controversy. The most common reason is divorce followed by partner disputes. Given the rising volume of law firm valuations you… Continue Reading
Do you have a need for an architecture firm valuation? First, some of the tools professional appraisers use: The pros usually prefer market-based valuation methods to value architecture firms, classified under SIC code 8712 and NAICS 541330. Business brokers often close business sales in this professional services industry. As a result, you can find reliable… Continue Reading
Are you valuing a company based on its revenue? Wondering how to handle it? In short, the best way is to compare your company against recent sales of similar businesses. If the sold companies look much like your business, you can come up with a decent value estimate using valuation multiples. The multiples let you… Continue Reading
If you are valuing a CPA practice, consider using the tried and true tools – valuation multiples derived from the sales of comparable accounting practices, classified under SIC code 8721. The advantage of taking this market approach to an accounting practice valuation is twofold: It offers highly defensible evidence of the current selling prices for… Continue Reading
With the amount of debt accumulated by both the consumers and businesses in recent years, professional debt collection is a growing business. Key industry stats Classified under SIC code 7322, there are close to 7,780 collection agencies operating in the US alone. They generate over $11.99B in annual revenues. According to the US Bureau of… Continue Reading
I think you will agree – we are seeing the most unprecedented changes in the economic environment in recent history. And unlike the earlier downturns, the effect is felt across all industry sectors and by most businesses, large or small. Business people are rightly concerned to ask: how does this affect my business value? Importantly,… Continue Reading
Considering getting a valuation for a beauty salon? Some thoughts on the industry sector. Day spas are popular personal services businesses. Their number speaks for itself – classified under the SIC code 7231, there are over 325,000 such establishments in the US alone. The industry employment of 907,250 people is quite large. Day spas and… Continue Reading
Wondering how the current economic situation affects business valuation? To gain an insight, let’s take a look at the fundamentals of business appraisal. Three approaches to business valuation The value of any business can be measured three ways, known as approaches: Market – by comparing the recent sales of similar businesses. Asset – by studying… Continue Reading
One way to value a business is by comparison to recent sales of similar businesses. As a result, you can estimate your business value from such market comps using valuation multiples. A wide range of valuation multiples to choose from These multiples are ratios that help you determine your business market value in relation to… Continue Reading
If you are valuing a women’s apparel store, consider these important factors: Apparel retail shop value drivers Successful stores keep their rental expenses to within 10% of the gross revenues. Labor costs make up a significant factor that contributes to the store profitability and business value. The industry norm is to keep labor expenses under… Continue Reading
Business valuation of fitness centers reflects their unique nature. For instance, while no industry is truly recession proof, fitness clubs come close. And there are good reasons for this: Health club membership continues to grow as more and more people realize the health benefits of regular exercise. Exercise really helps reduce stress. Health club members enjoy… Continue Reading
Are you a seasoned business person or experienced professional? Then you know that getting your business appraisal done right is one of the most demanding challenges you are likely to face. Idle curiousity aside, a casual “spot check” somewhere on the Web will not do. As the economic climate gets tougher, your business valuation must… Continue Reading
What are the best valuation multiples for retail businesses? A leading question first. What is the top measure of financial performance that stands out in the retail industry? You may have heard of sales per square foot or SPF for short. Professional appraisers benchmark retail stores on SPF – and for a good reason: Floor… Continue Reading
Do you own an engineering business or are looking to acquire a consulting company? Then you should consider getting a valuation of your engineering firm. First, here are some interesting industry statistics and company valuation tips: Private engineering firms are a typical professional service business. Moreover, there are some 58,300 engineering firms classified under SIC… Continue Reading
If you own a small business or plan to buy one these days you may be wondering – how is the current economic downturn affecting the small business selling prices? If you are tempted to check the public company stock market for guidance on private business sales – do be careful. The truth is that… Continue Reading