Business Valuation Guide
Knowing what your business is worth puts you squarely in control of the selling process. This is the know-how that you simply cannot afford to delegate, regardless of whether you opt to use the services of a business intermediary.
Small business valuation is a sophisticated blend of art and science that aims to provide an impartial opinion of value. Yet your business is unique. Your buyer, too, has a unique set of motivations and goals that make your business especially attractive.
Moreover, successful deals are structured for both the optimal price and acceptable terms. Here are some value drivers that work to determine the business value:
- Business earning power.
- Likelihood of the business income continuing into the future.
- Effective barriers to entry which reduces competition.
- Availability of business acquisition financing.
- Active pool of qualified buyers that may be interested in your business.
ValuAdder provides a set of proven valuation methods and powerful deal structuring computations that enable you to establish and maintain a fine balance between your objectives and the buyer’s needs which is essential to the successful business sale.
ValuAdder makes the process of determining the value of your company intuitive and straightforward. The Market Comps, based on in-depth analysis of actual private company transaction data, enable you to quickly determine a reasonable selling price range, factoring in the key parameters of your business such as revenue, cash flow, inventory, FF&E or the tangible asset base.
Business buyers pay for the past but buy the future. The Discounted Cash Flow method gives you a compelling way to show how your income stream projections translate into value for the buyer.
The Net Present Value method takes an investment view of the business acquisition, enabling the comparison of business income benefits against the investment involved in the purchase.