Professional Valuation Services

Establishing a Market Value for a business can be interesting.  At times values will be found lower than what the years of hard work and dedication can expect.  To sell a business, a realistic value must be established.  For most businesses the value is a multiple of the Discretionary Earnings of the business.  The value has to be supported by the assets quality financial records of the business.  For business owners VR offers a couple of options to help them in determining value.  All VR Business Brokers can provide an estimate made on the financials and knowledge of the local business environment.  (Based on the Sellers Discretionary Earnings)

VR offers a third party approach to valuation that many of our clients prefer.  Why third party?  It is a service we offer to establish a value that is provided by a non-interested entity in the business being considered.  Valuation differences are used many times solely to determine who an owner will trust to help them sell their asset.  Third party, non-interested parties giving values are not in the market to buy businesses so there is no reason for them to work numbers to obtain a listing.  Business owners, if not careful, can enter into selling agreements at a value only to find later they were given a value that cannot be realistically expected.

Buyers sometimes like the fact the value was established at arms length so they know there is no collusion between the seller and their agent.  It shows the buyer the seller is going the extra mile to fairly establish the businesses value.

We charge a fee for the third party valuation.  The benefit to you is it becomes yours to use for business financing needs or in determining whom you may potentially use to sell your asset.

Interested in knowing the value of your business or want current third party fee?  Email BobCourtney, Director VR in Kauai,  bob@vrhi.com.