Just Elementary, Inc. » Business Valuation
Discounting Inventory & Deferring Payments During Escrow
In the middle of a transaction of selling your business, the topic comes up of counting the Inventory. You say, of course, to ‘do it’ so an accurate sales price can be determined for the business plus the inventory at your cost. You also let the buyer know that the inventory amount is ($500,000 for example), and it is all in good saleable condition. The buyer asks you how often you turn the inventory and … Read entire article »
Filed under: Business Valuation, Due Diligence, Negotiation
Business Valuation Too High Using Wrong Methodologies
Many a client we have come across has a business valuation in their hands that is much higher than reality dictates. The reason for this is multi-faceted. Let’s start with unscrupulous M&A sounding firms who claim to be able to sell businesses for outrageous multiples based on future earnings. Often, these types of firms put on slick presentations and claim to have sold many businesses for great premiums. … Read entire article »
Filed under: Business Valuation, Featured
How You Benefit from a Small Business Valuation
It is a simple question: Why should I get a valuation for my business, especially if I am not planning on selling business anytime soon? As business intermediaries, we can tell you why. Reason #1 to Get a Broker’s Opinion of Value: Checkup for your business One good reason to get a Broker Opinion of Value (BOV) from an experienced business broker is to help you find out where you are losing value in your business. In our experience, we … Read entire article »
Filed under: Business Valuation
Factors that Effect the Value of a Business
Factors Affecting the Value of a Business Lease & Occupancy Cost In the cases of businesses operating on a lease, the lease terms are key to affecting the contribution of value to the business. For retail business that are not footloose, a long term is key to positive value. For example, with a coin laundry, the lease needs to be typically, 20 years or more in length. Long term leases are important with most retail businesses. In … Read entire article »
Filed under: Business Tips, Business Valuation, Uncategorized
Business Valuations, Where is the Value?
If you poll business owners about how much their business is worth, you will get a broad range of answers. Ascertaining the actual value of a business is not a simple matter. The first step is to determine the type of value being analyzed. Are we talking about Resale Value, Liquidation Value, Merger/Acquisition Value, Book Value, Divorce Sale Value, etc. All of these situations present different circumstances, which lead to different valuations. Merger/Acquisition Value The Merger/Acquisition (M&A) value … Read entire article »
Filed under: Business Valuation
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