Business Valuations

What’s YOUR Business worth?
Depends who’s asking!

Business Valuations
Estimating what your business will sell for.

Business Valuations Stacey International

The Purpose Drives the Value!

The purpose of the valuation drives the value. What’s included?

For Succession, Divorce, Partnership dissolution, and other purposes, the valuator is tasked with valuing the enterprise as it sits.  That is, EVERYTHING is included!  This might mean cash, debt, art, investments, and an infinite number of other items that your business may have accumulated over its lifespan.

A valuation of the complete enterprise may need a Business Valuator along with such experts as Asset Appraisers and Real Estate Appraisers to develop the value of the TOTAL enterprise.

When you decide to sell, or are  buying a business, the valuation may include limited portions of the enterprise such as Goodwill, Fixed Assets, and Inventory.

Free Consultation

The value of your business depends on who’s asking!  & the purpose of the valuation!

No matter what the purpose, beware of the sidewalk expert who thinks a couple of standard adjustments and a standard “multiple” will give you an answer.  Your business is unique, and the purpose of the valuation matters!

At Stacey International, we have the expertise to provide a value for ANY purpose!

The value of your business depends on who’s asking!  & the purpose of the valuation!

No matter what the purpose, beware of the sidewalk expert who thinks a couple of standard adjustments and a standard “multiple” will give you an answer.  Your business is unique, and the purpose of the valuation matters!

At Stacey International, we have the expertise to provide a value for ANY purpose!

Free Consultation

Approaches

Asset Approach

The sum of the pieces equals the total…

The various pieces of your organization are valued at market value and added together to estimate the total value of your organization.

Income Approach

What would someone pay for all the future earnings of the business today?  Essentially the present value of future earnings.

Market Approach

Comparable transactions are researched to use as multipliers of the earnings of the subject enterprise.

A Valuation is a Valuation, Except When it is Not.

A Business Valuation for Divorce or Succession is an estimate of the value of the complete enterprise as it sits on that date.

In a buy/sell situation… Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor.Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor.

Types of Valuations

  • Conclusion of Value
  • Limited Scope Estimate of Value
  • Pricing Opinion
succession business sale

Estimating what your business will sell for.

TOP 5 FACTORS that influence selling price.

Estimating what your business will sell for
  1. Results:  The first question every buyer asks is:  How much does it make?  The value of your business is driven by the results.  A business is an investment like any other and the income is the Return on Investment.  What that return is worth IS the value of the business.
  2. Location:  Location drives value – consider remote vs. urban, availability of staff and customers; even such simple things as the location of an access driveway can affect how profitable a business can be.
  3. Lines Carried or Products Sold:  Carrying the best selling, most innovative, or most in demand product affects profitability and traffic to a business.  Carrying off-top brands or services changes the potential of the business.
  4. Staff & Team in place:  Management in place to run the operations after sale affects value; trained long term staff are much more valuable than high turnover situations due to the customer loyalty they attract.
  5. Presentation of the Business:  A visit to the premises is sometimes the last step before an offer, but other factors tell your story:  what do internet reviews look like?  What do your financial statements look like – reliable and consistent vs. messy and inconsistent?  What do your google street view and other photos tell about your business?  And, ultimately what does the premises look like when a buyer does visit?  The value of your business hinges on the presentation of your business in many ways.