{"id":560605,"date":"2012-06-27T07:20:43","date_gmt":"2012-06-27T11:20:43","guid":{"rendered":"https:\/\/vrbbd.wpengine.com\/vrbbmadison\/a-different-look-valuing-your-company\/"},"modified":"2022-01-31T12:44:14","modified_gmt":"2022-01-31T17:44:14","slug":"a-different-look-valuing-your-company","status":"publish","type":"post","link":"https:\/\/www.vrbusinessbrokers.com\/vrbbmadison\/a-different-look-valuing-your-company\/","title":{"rendered":"A Different Look at Valuing Your Company"},"content":{"rendered":"<div>\n<p>Is there pricing elasticity?<br \/>\nWhat&#8217;s proprietary?<br \/>\nWhat&#8217;s the company&#8217;s competitive advantage?<br \/>\nStatus of employment agreements and non-competes?<\/p>\n<p><strong><b>Post-Acquisition:<\/strong><\/b><br \/>\nAre there cost savings after purchase?<br \/>\nAre there significant capital expenditures pending?<br \/>\nIs there synergy with the seller?<br \/>\nIs it perceived the integration will go smoothly?<br \/>\nAre there substantial cross-selling possibilities?<br \/>\nWill the cultures blend?<\/p>\n<p><strong><b>The Financials:<\/strong><\/b> By training and education, many business appraisers emphasize the numbers. They will look at the past, current and future numbers. They will consider all the basic financial figures such as:<br \/>\n\u2022\u00a0growth rate<br \/>\n\u2022\u00a0return on investment<br \/>\n\u2022\u00a0gross profit percentage<br \/>\n\u2022\u00a0EBITDA percentage<br \/>\n\u2022\u00a0industry metrics<br \/>\n\u2022\u00a0debt to net worth<br \/>\n\u2022\u00a0book value<\/p>\n<p><strong><b>Fundamentals:<\/strong><\/b> Business appraisers should also consider the company\u2019s history, its management, products, distribution, etc. The following should also be seriously considered: multi-products, different markets, wide distribution and the quality of management.<\/p>\n<p><strong><b>Value Drivers: <\/strong><\/b>These are important business elements that are most often ignored or completely overlooked by business appraisers.\u00a0 However, they are very important to a potential buyer.<br \/>\n\u2022\u00a0product differentiation<br \/>\n\u2022\u00a0defensible position<br \/>\n\u2022\u00a0technology<br \/>\n\u2022\u00a0dominant market share<br \/>\n\u2022\u00a0well-known brand(s)<br \/>\n\u2022\u00a0cost advantage<br \/>\n\u2022\u00a0proprietary customer<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Is there pricing elasticity? What&#8217;s proprietary? What&#8217;s the company&#8217;s competitive advantage? Status of employment agreements and non-competes? Post-Acquisition: Are there cost savings after purchase? Are there significant capital expenditures pending? Is there synergy with the seller? Is it perceived the integration will go smoothly? Are there substantial cross-selling possibilities? Will the cultures blend? The Financials: [&hellip;]<\/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-560605","post","type-post","status-publish","format-standard","hentry","category-valuation"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbmadison\/wp-json\/wp\/v2\/posts\/560605","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbmadison\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbmadison\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbmadison\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbmadison\/wp-json\/wp\/v2\/comments?post=560605"}],"version-history":[{"count":0,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbmadison\/wp-json\/wp\/v2\/posts\/560605\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbmadison\/wp-json\/wp\/v2\/media?parent=560605"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbmadison\/wp-json\/wp\/v2\/categories?post=560605"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbmadison\/wp-json\/wp\/v2\/tags?post=560605"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}