Business valuation should be considered a starting point for buyers and sellers. The more informed the parties in a transaction are, the better the likelihood of a good deal.
Of course, each party has different motivations, but fair market value is the price a seller will accept and a buyer will pay.
Only the right buyer will pay the right price.
- Christopher George, President & CEO of George and Company and Central Business Brokers
When you come to George and Company and Central Business Brokers for business appraisals, we start by asking you to provide us with a number of items that will aid us in developing a value for your company. The most important information we will request are financial records and documentation.
In most instances we will ask you for a minimum of three years of tax returns and/or financial statements. Due to the fact that financial statements are typically a more accurate picture of your company’s financial position, emphasis may be placed on these documents.
Other important information includes the history and description of the company, the competition, and the local economic conditions surrounding your business’ location, or the global economic conditions if your business trades on a global scale.
All those things will have an influence on where your company is, the direction your company is going, and what the overall value of your organization is. We strongly believe that complete business appraisals and valuations lead to the successful closing of a deal.
Any financial documents and information forwarded to us remains confidential.
Here are some of the common methods we use to determine the value of a business:
- Asset valuation
- Capitalization of income valuation
- Owner benefit valuation
- Market approach
- Book Value
- Liquidation Value
- Discounted future earnings approach
We have found that the businesses we have taken through formal business appraisals sell closer to asking price than those without appraisals or valuations.
Are you ready to put a value on your business and take the first step towards getting the best, most fair dollar you can? Fill out the form below to schedule your complimentary and confidential exploratory conversation.
To learn more about business appraisals and valuations, please visit our blog.