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.
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
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
Looking to get a valuation for a bakery business? First, some industry stats to ponder: Retail bakery industry – top statistics The bakery industry has deep roots in the economy with a number of established players. Some 9,600 bakeries classified under SIC 5149 and NAICS code 311811 compete in the US alone, And together they… 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
Given the current situation in the real estate market, you may spot an uptick in real estate broker valuation. Many owners want to know what the brokerage is worth. You should get the answer especially if you decide to put the business up for sale. When it comes to valuation, real estate brokerages bear strong… Continue Reading