Business valuation tips, updates and advice. Pick up a few suggestions on how to value a business. Feel free to browse the contents or share your thoughts by leaving a comment.
If you are considering buying a small business or offering yours up for sale, the central questions are: What can the business sell for? How should I structure the price and terms of the deal? Valuing a business to estimate its selling price Not surprisingly, the business selling price is related to its value. Measuring… Continue Reading
Do you own a small pest control company? Perhaps plan to buy one? In either case, knowing what the business is worth is essential. Privately owned pest control firms, classified under the SIC code 7342 and NAICS 56171, are a common service business. Established companies in this industry, especially those with a track record of positive… Continue Reading
Classified under the SIC 5719 code and NAICS 337133, home furnishings stores are a major segment of the retail industry. If you need to value such a business, you have a choice of well-known methods to get the job done. Perhaps the best known approach to valuing a home furnishings company is by comparison to… Continue Reading
Catering companies make up a major segment of the food and drink industry. They fall under the SIC 5812 and NAICS 72232 industrial classification.. Successful catering businesses sell quite often. So if you need to determine the fair market value of your company, you should have plenty of market evidence. In fact, valuation multiples derived from… Continue Reading
Getting a business appraisal that is accurate and defensible can make a difference of thousands and even millions of dollars. Whether you are planning on a business sale or purchase, handling a legal dispute or tax matter, a key part of your strategy should be knowing what the business is worth. Since the stakes are high, it… Continue Reading
Perhaps the best known reasons for getting a business valuation are a business sale or purchase and handling a legal challenge such as divorce or partner dispute. You can also use business valuation as a strategic planning tool. And one of the most important questions to address is whether you should keep your doors open… Continue Reading
The Multiple of Discretionary Earnings is a classical example of direct capitalization methods under the Income Approach to business valuation. Using this technique you can determine your business value as a capitalized multiple of business discretionary cash flow. The valuation multiplier used by the Multiple of Discretionary Earnings method is built up based on your… Continue Reading
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