Your company represents a great source of pride and income to you and your family. You have invested years of your life creating, sculpting, and refining your business. As the owner, your decision to sell is a very important one, and will likely be based upon a number of key considerations, including the anticipated price, terms, and net proceeds of the sale. Our brokers are in the market every day, dealing with Sellers, Buyers and Banks. We can help you make your decision by providing a fair market valuation based upon proven principles, market comparables, verifiable valuation models, and many years of experience selling thousands of businesses!
Free Value Assessment
To prepare our clients for the sale process, the professionals at Certified Business Brokers will provide a free fair market valuation analysis that establishes a reasonable range of value for your business. This "go to market" valuation range considers a number of value drivers, including:
- History / trend of Revenues
- History / trend of Cash flows
- Size of Cash flows
- Working capital requirements
- Marketability of the business (is there a ready market, or limited buyer universe)
- Degree of Competition
- Ease of entry into the business
- Industry trends
- Growth opportunities for the business
- Unique assets (differentiators like people, processes, licenses, exclusivity agreements)
- Age and quality of physical plant and equipment assets
- Location and Facilities (will a new owner need to inject additional capital to modernize)
- Amount of risk (e.g., heavy seasonality, customer/supplier concentrations)
- Motivation and Flexibility of the parties
- Comparable Sales Data
- ROI and income objectives of buyers
Broker's Opinion of Value
If you are a business owner that needs a written report utilizing several relevant valuation methods, or if you are a buyer that needs a value analysis on a business you are considering for purchase, then we can perform a Broker’s Opinion of Value report. This report is typically 10 – 15 pages in length and explains the analysis that resulted in the conclusion of value.
Certified Business Appraisal
Often a business owner requires a formal presentation of the value of a business in a self-contained written report. This type of valuation is known as an Appraisal Report. If a valuation has the potential to go to court, or if the report needs to be reviewed by others, such as the IRS for tax implications, this type of report explains in full detail how the value was derived. The Appraisal is developed under the guidelines of the Uniform Standards of Professional Appraisal Practice (USPAP) and written by an appraiser certified to perform such analysis. USPAP represents the generally accepted and recognized standards of appraisal practice in the profession. Compliance with these standards ensures that proven peer-reviewed valuation methods are used to develop defendable opinions of value.
Situations that could necessitate an Appraisal Report are:
- Buy-out of Partners/Shareholders (private firms)
- Buy/Sell Agreements
- Exit Strategy Planning
- Fairness Opinions
- Personal Financial Planning
- Insurance Underwriting
- Buy-in/Capital Infusions/Equity Participation Valuation
- Independent Appraisal Verification
- Family Business Ownership Transfers
- Mergers and Acquisitions
This report is typically 70 – 90+ pages in length.
Business appraisals and real estate appraisals do not include a valuation of the individual pieces of machinery and equipment that are owned by a business. Owners, Bankers, CPA’s and Attorneys often need to know the current market value of equipment rather than a depreciated accounting value. The professional equipment appraisers at CBB hold the prestigious CERTIFIED MACHINERY AND EQUIPMENT APPRAISER (CMEA) designation and can deliver an equipment appraisal that is USPAP compliant, substantiated, and defensible. To learn more about our Equipment Appraisal Services CLICK HERE.