Small businesses are typically valued by comparisons to similar completed sales, financial multipliers, industry rules of thumb, cash flow analysis, asset valuation or any combination of these methods. However, the valuation is only the first step in realizing the WORTH of a business.
A business must be able to pay a potential buyer a reasonable wage and take care of any debt the owner must take out to buy the business. Bigger businesses will be valued more on a cash flow basis. If the cash flow is harder to document and prove, the business is harder to finance and will sell for a lesser multiplier. Conversely, if the business has good cash flow and records, it may sell for a premium.
A potential buyer will be armed with the same information. We work with sellers to uncover the hidden value of a business, whether it be financial or intangible. Our mission is to realize the maximum value for a seller while satisfying the concerns of the buyer and his financing institution.
A valuation is worthless without a willing and able buyer. Once the business is listed we utilize our extensive marketing resources to promote your business. And then once a potential buyer comes forward, our years of experience in dealing with buyers enables us to match this business to the needs of the buyer.