Going Beyond Profit with a Business Valuation
Getting the Most from a Business Valuation
A business valuation is an assessment of the estimated economic value of a business. Business valuations are often done to support the sale of a business, IRS disputes, divorce, due diligence, raising capital, etc… Business valuations can also be used as a powerful business planning tool. A business valuation can be used as a strategic planning tool to radically increase the value of any business if you understand the levers that can explode what buyers will pay for your business. Big Wall Street companies do it all the time, but most small businesses never take advantage of strategic planning. Here are just some of the benefits of a business valuation for your small business:
- Valuable Strategic Planning Tool
- Value Enhancement Recommendations
- A Description of The Ideal Acquirer (for when the time comes)
- Estimated Fair Cash Value
- Estimated Fair Market Value and Probable Transaction Structure
Benefits of Bizprofitpro Business Valuations
Description of Your Ideal Buyer
Know the different types of buyers in today's marketplace and what they will pay for your business and why. Maintain confidentiality and value by limiting marketplace exposure to only the right buyers who pay the highest prices. There are dozens of valuation methods that can have very different valuations. Many of these valuations are wrong, because the valuation does not fit the type of buyer likely to buy the business. For example, industry buyers will pay a fraction of what most other buyers will pay. Industry buyers use liquidation and salvage value to arrive at the price they will pay. You should always position your business to appeal to buyers outside of the industry you are in.
Fair Cash Value
Know how asset values, cash flows, bank financing and business climate combine to produce a cash price. Provide basis for consideration of seller participation in financing a transaction. Most buyers would like to receive all cash upon the sale of their business. But do you know the right discount for cash.
Business Valuation should be used as a strategic tool to maximize the value of your business. The time to get a Business Valuation is now if you want to increase the value of your business. A professional Business Valuation will give you a roadmap to make your business more valuable and sell faster whenever the time comes.
Know the optimum structure to use to minimize tax impact to keep the most money from the transfer or your business. You will learn the best strategy to increase the value of any deal while shielding yourself from future risks and liabilities.
Fair Market Value
Be able to compare cash price with a price where seller provides some financing. You will be able to make an informed decision to participate based upon amount involved and quality of the buyer.
Contact Bizprofitpro at 800-905-1213 Ext 111. if you would like to learn more about a Professional Business Valuation and how it can help your business.