Business Valuations

Wondering What Your Business Is Worth? VR Is The Nation's Small Business Valuations Experts! Regardless of where your business is located, we have the experience and tools to quickly and accurately evaluate your business. By working with VR you have the advantage of dealing with the most experienced business brokerage organization in the world. VR's reputation is unparalleled with over 60,000 businesses sold and 1000's of valuations completed nationwide. Why do people need business valuations? Before you decide you want to list your business with us, we will prepare a simple two-page recasting at no cost. This way, we can quickly determine if the business is saleable, if you will need a more formal valuation, or if the timing is not right to sell your business right now. The top 5 reasons to obtain a business valuation are: 1. Planning for sale 2. Obtaining financing 3. Conducting annual review 4. Enhancing value 5. Tax or legal issues How do we establish the value? Ultimately, the business is worth what the market will bear. This means that the business is worth the highest price a Buyer is willing to pay! With that said, although we look at nine different valuation methodologies, there are four that generally carry the most weight. They are: (1) multiple of earnings, (2) comparable transactions analysis, (3) asset-based valuation, and (4) discounted cash flow analysis. Valuation experts will value a company with more than one of the methodologies simultaneously, comparing results among the different approaches to determine a correct valuation, all the time keeping in mind the strengths and weaknesses inherent in each approach. What do we need to get started? All businesses are different. Some businesses keep great books and records. Others keep very little. We can work around any situation. However, most often we require: 1. Three years of business tax returns or profit-and-loss statements. 2. Current year-to-date profit-and-loss statement. 3. Current balance sheet. 4. Approximate value of furniture, fixtures, equipment, and inventory. 5. Details on the lease, if applicable. How long does it take? In most cases, we can provide the valuation within 48-72 hours of receiving the COMPLETE packet. What do I get? The completed Business Valuation consists of a 32-40 page bound document listing the value of the business, valuation methodologies used to establish that value, descriptions of each valuation methodology, possible financing scenarios, and comparable businesses that have been sold in the past three years. How much does it cost? The cost of the valuation varies by many factors including purpose for valuation (whether for internal or external purposes, acquisition or litigation), business size, type of corporate identity, years in business, whether the business has clean books, etc. The range is $1,000 - $3,000, with most valuations priced between $1,600 - $2,200. You will find this price to be way less than most sources! For businesses with revenues in excess of $4,000,000 to $5,000,000, a more exhaustive Mergers & Acquisitions appraisal will be completed. This type of valuation will require more time to complete (typically 10-12 business days), and require more thorough dialog with the owner. The fee for these services typically varies from $2,500 to $5000+, depending on the type and purpose for the appraisal.