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Buy/Sell Business Expert
888-778-1437
Are you planning to buy or sell business? We can help.
►Sell Business
We will analyze and evaluate your business and make sure that you get paid the maximum amount at closing.
►Business Acquisition Financing
We will analyze your acquisition and engineer the best possible financing structure. Depending on the structure of your
transaction we can get debt, equity or combination of debt and equity financing for you.
As a business owner considers placing a company on the market, ascertaining the proper value for the company is critical.
Too often the owner assigns an unrealistic and unachievable arbitrary value then proceeds into the sale process only to be
disappointed with the market’s response. As a result, the asking price is reduced several times. During this unfortunate
period buyer prospects and valuable time is lost.
In reality, a company’s value is determined by a compilation of factors such as the company’s sales, earnings,
performance, market outlook, personnel, net book value and fair market replacement value of equivalent operating assets.
But it can also be influenced by intangible assets like the company’s image, reputation and goodwill.
There three major approaches to valuing your business.
►Balance Sheet Value
There are several balance sheet valuation methods, including adjusted book value, book value and liquidation value. The
adjusted book value is determined by revising the asset’s book value to reflect the cost it would take to replace the assets
in their current condition. This method requires the total values to be offset against the sum of the liabilities.
The book value considers the figures from the company’s financial records, as depreciated at the time of the sale. The
book value can pose some difficulties for sellers, particularly if the seller has depreciated the assets too much to gain prior
tax advantages.
The liquidation value is the amount that could be realized if all assets – equipment, furnishings and inventory – were sold
separately. This value is typically much lower since it doesn’t consider a company’s intrinsic value.
Income Approach.
888-778-1437
888-778-1437
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