ValuAdder Business Valuation Blog

Archive for the 'Business Valuation Tips' Category

One way you can put business valuation to good use is as a strategic planning tool. Knowing what your business is worth helps you make informed business decisions in a number of critical situations. Many business people consider selling their business at certain point. Given the years of hard work that go into building a… Continue Reading


If you think small domestic call centers are a thing of the past  and have been outsourced offshore, think again – there are over 15,000 small and mid-size call center businesses operating in the US alone, classified under SIC 7389 and NAICS 561421. While the average call center employs nearly 300 agents, many businesses in this… Continue Reading


You can value any business or professional practice three ways, known to professionals as valuation approaches: Market – by comparing your business to similar businesses that sold recently. Income – by assessing your company’s earning power and risk. Asset – using the business assets as your valuation basis. There are a number of well-known business… Continue Reading


Key industry stats Classified under SIC 8351, there are slightly under 149,000 day care centers operating in the US alone. The industry as a whole generates over $19.9B in annual revenues. Despite the growing presence of large chains, the average day care center is small – producing some $100,000 in annual sales with about 7 employees. These… Continue Reading


Do you need to value a printing business? First, some industry stats to consider: For a mature industry, commercial printing shows surprisingly low consolidation. There are, for example, some 31,750 lithographic printing establishments in the US alone. This printing industry segment generates an impressive $45B in annual sales and employs nearly 345,000. Yet an average… Continue Reading



Whether you are valuing a business by yourself or engage a professional business appraiser, a business appraisal report is a typical work product you get. Such a report does more than summarize the business valuation results – it clearly defines what business ownership interests are being valued. Importantly, it also shows the key assumptions and judgement… Continue Reading



Valuing a company that is losing money? Businesses face a host of risks every day. But sometimes truly epic economic shifts occur. Whether a financial markets debacle or natural disaster, their effect on the economy and business fortunes may hit abruptly and have profound effects. Once high flying companies could face the headwinds that business… Continue Reading



If you are looking to sell your small business or plan to buy one, the central question is what the business is worth on the market. Overprice your business, and you will see little buyer interest. If your asking price is too low, you risk leaving a lot of money on the table. Knowing the market… Continue Reading


Heating, ventilation and air conditioning as well as plumbing contractors make up a very large industry with over $121 billion in annual gross revenues. The industry is still highly fragmented with some 178,550 independent business competing across the US alone. The average business in this industry, classified under SIC 1711, is privately owned and small… Continue Reading


There are no better indicators of what a business is worth than its earning prospects and risk profile. Savvy investors analyze business opportunities by doing careful forecast of their income. But forecasts and money in the bank do differ in one key respect – there is a risk that the business may not live up… Continue Reading


Any business appraisal, whether prepared by you or someone else, depends on the assumptions made at the outset. Take a look at a well-prepared business appraisal report and you will see that, how the business value is measured as well as the circumstances of business appraisal, are clearly spelled out. In addition, assessment of business worth requires informed judgement… Continue Reading