{"id":560758,"date":"2019-01-19T18:12:33","date_gmt":"2019-01-19T23:12:33","guid":{"rendered":"https:\/\/vrbbd.wpengine.com\/vrbbgreenbay\/determining-your-companys-undocumented-value\/"},"modified":"2022-01-31T12:42:42","modified_gmt":"2022-01-31T17:42:42","slug":"determining-your-companys-undocumented-value","status":"publish","type":"post","link":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/determining-your-companys-undocumented-value\/","title":{"rendered":"Determining Your Company\u2019s Undocumented Value"},"content":{"rendered":"
\"\"<\/p>\n

Business appraisals are not one-dimensional. \u00a0In fact, a good business appraisal is one that factors in a wide range of variables in order to achieve an accurate result. \u00a0Indisputable records ranging from comparables and projections to EBITDA multiples, discount rates and a good deal more are all factored in.<\/span><\/p>\n

It is important to remember that while an appraiser may feel that he or she has all the information necessary, it is still possible they have overlooked key information. \u00a0Business appraisers must understand the purpose of their appraisal before beginning the process.\u00a0 All too often appraisers are unaware of important additional factors and considerations that could enhance or even devalue a business\u2019s worth.<\/span><\/p>\n

There Can Be Unwritten Value<\/strong><\/p>\n

Value isn\u2019t always \u201cblack and white.\u201d\u00a0 Instead, many factors can determine value.\u00a0 Prospective buyers may be looking at variables, such as profitability, depth of management and market share, but there can be more that determines value. <\/span><\/p>\n

Here are some of the factors to consider when determining value: How much market competition is there?\u00a0 Does the business have potential beyond its current niche?\u00a0 Are there a variety of vendors?\u00a0 Does the company have easy access to its target audience?\u00a0 At the end of the day, what is the company\u2019s competitive advantage?\u00a0 Is pricing in line with the demographic served?\u00a0 These are just some of the key questions that you\u2019ll want to consider when evaluating a company.<\/span><\/p>\n

There are Ways to Increase Both Valuation and Success<\/strong><\/p>\n

No doubt, successful businesses didn\u2019t get that way by accident. \u00a0A successful business is one that is customer focused and has company-wide values. \u00a0Brian Tracy\u2019s excellent book, \u201cThe 100 Absolutely Unbreakable Laws of Business,\u201d notes that it is critical for businesses to have a company-wide focus on three key pillars: marketing, sales and, of course, revenue generation. \u00a0Tracy also points out that trends can be seen as the single most vital factor and bottom-line contributor to any company\u2019s success and, ultimately, valuation.\u00a0 For 2018 and beyond, projected trends include an increase in video marketing, the use of crowdfunding as a means of product validation and more.<\/span><\/p>\n

No Replacement for Understanding Trends<\/strong><\/p>\n

If a company doesn\u2019t understand trends, then it can\u2019t understand both the market as it stands and as it may be tomorrow. \u00a0Savvy business owners understand today\u2019s trends and strive to capitalize on the mistakes of their competitors while simultaneously learning from their competitors\u2019 successes.<\/span><\/p>\n

Tracy accurately states that while there are many variables in determining value, finding and retaining the best people is absolutely essential. \u00a0One of the greatest assets that any company has is, in the end, its people.<\/span><\/p>\n

Copyright: Business Brokerage Press, Inc.<\/a><\/p>\n

Stoathphoto\/BigStock.com<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Business appraisals are not one-dimensional. \u00a0In fact, a good business appraisal is one that factors in a wide range of variables in order to achieve an accurate result. \u00a0Indisputable records ranging from comparables and projections to EBITDA multiples, discount rates and a good deal more are all factored in. It is important to remember that […]<\/p>\n","protected":false},"author":2,"featured_media":560760,"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":[7,3,2],"tags":[],"class_list":["post-560758","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buying-a-business","category-seller-articles","category-selling-a-business"],"blocksy_meta":{"styles_descriptor":{"styles":{"desktop":"","tablet":"","mobile":""},"google_fonts":[],"version":6}},"_links":{"self":[{"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/posts\/560758","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=560758"}],"version-history":[{"count":0,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/posts\/560758\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/media\/560760"}],"wp:attachment":[{"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/media?parent=560758"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/categories?post=560758"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/tags?post=560758"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}