{"id":560704,"date":"2012-06-27T07:26:04","date_gmt":"2012-06-27T11:26:04","guid":{"rendered":"https:\/\/vrbbd.wpengine.com\/vrbbgreenbay\/checklist-valuation\/"},"modified":"2022-01-31T12:44:13","modified_gmt":"2022-01-31T17:44:13","slug":"checklist-valuation","status":"publish","type":"post","link":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/checklist-valuation\/","title":{"rendered":"Checklist for Valuation"},"content":{"rendered":"
\n

1.\u00a0Start with the business<\/strong><\/b>
\n–\u00a0 Value Drivers:\u00a0 Size, growth rate, management, niche, history
\n–\u00a0 Value Detractors:\u00a0 Customer concentration
\nPoor financials
\nOutdated M&E
\nFew assets
\nLack of agreements with employees, customers, suppliers
\nPoor exit possibilities
\nSmall market
\nPotential technology changes
\nProduct or service very price sensitive<\/p>\n

2.\u00a0Financial analysis:\u00a0<\/strong><\/b>Market Value – comparables
\nMultiple of Earnings – based on rate of return desired<\/p>\n

3.\u00a0Structure and terms:<\/strong><\/b>\u00a0100% cash at closing could reduce price 20%<\/p>\n

4.\u00a0Second opinion:\u00a0<\/strong><\/b>Even professionals need a sounding board<\/p>\n

5.\u00a0Indications of high value:<\/strong><\/b>
\n–\u00a0High sustainable cash flow
\n–\u00a0Expected industry growth
\n–\u00a0Good market share
\n–\u00a0Competitive advantage – location\/exclusive product line
\n–\u00a0Undervalued assets – land\/equipment
\n–\u00a0Healthy working capital
\n–\u00a0Low failure rate in industry
\n–\u00a0Modern well-kept plant<\/p>\n

6.\u00a0Indications of low value:<\/strong><\/b>
\n–\u00a0Poor outlook for industry –
\nforeign competition
\nprice cutting
\nregulations
\ntaxes
\nmaterial costs
\n–\u00a0Distressed circumstances
\n–\u00a0History of problems – employees, customers, suppliers, litigation
\n–\u00a0Heavy debt load<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

1.\u00a0Start with the business –\u00a0 Value Drivers:\u00a0 Size, growth rate, management, niche, history –\u00a0 Value Detractors:\u00a0 Customer concentration Poor financials Outdated M&E Few assets Lack of agreements with employees, customers, suppliers Poor exit possibilities Small market Potential technology changes Product or service very price sensitive 2.\u00a0Financial analysis:\u00a0Market Value – comparables Multiple of Earnings – based […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[10],"tags":[],"class_list":["post-560704","post","type-post","status-publish","format-standard","hentry","category-valuation"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/posts\/560704","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/comments?post=560704"}],"version-history":[{"count":0,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/posts\/560704\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/media?parent=560704"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/categories?post=560704"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/tags?post=560704"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}