The value of a business is based on two things:
What It Owns
A business has tangible and intangible assets.
What It Earns
A business provides a certain financial benefit to the owner.
How value is calculated.
A thorough understanding of the financial information is required to uncover the true earnings capability of the business.
Rules of thumb.
Most industries have one or more rules or thumb. However; the Business Valuator will be able to decide what is the most relevant information about a business, and then make an informed decision about its value.
The value of a business valuator.
Employs standardized formulas and methods to calculate value, including the selection of the appropriate risk and return variables, leading to the best calculations of value for a specific business.
Purpose of Business Valuations
Placing the right value on a business is essential for any of the following purposes:
- Sell your business at the Fair Market Value
- Provide a lender with Fair Market Value information for a business loan
- Plan for a merger, acquisition or stock offering
- Develop an estate plan or tax plan to protect your wealth
- Transfer of the business into a trust or create a succession plan
- Determine the value of assets and liabilities for a divorce settlement
- Assist attorneys in litigation
- Settlement of an insurance claim
- Set up an Employee Stock Ownership Plan (ESOP)
Whatever its purpose, a valuation can play a key role in helping you achieve your financial goals.
It is particularly important when attempting to sell a business. This valuation document is the single most useful piece of financial information about any business.
The business owner must be prepared to defend his opinion of value. A properly prepared valuation report would become the best usable tool to obtain a maximum selling price.
Lazarus employs the services of Nationwide Valuations’ for our Business valuation products. Their appraisers belong to the most respected associations in the country. A sampling of credentials include:
- Accredited Senior Appraiser (ASA), American Society of Appraisers
- Accredited in Business Valuation (ABV), American Institute of Certified Public Accountants,
- Certified Valuation Analyst (CVA), National Association of Certified Valuation Analysts
- Certified Fraud Examiner (CFE), Association of Certified Fraud Examiners Certified Machinery & Equipment Appraiser (CMEA), National Equipment and Business Broker Institute
- Chartered Financial Analyst (CFA), CFA Institute
The appraisers have:
- performed over 9,000 appraisals in the past 25 years.
- completed appraisals with values ranging from $50,000 to over $1 Billion.
- conducted over 50 seminars on Business Valuation around the nation and in Canada.
The best business evaluation services comes from experts trained in the field of business evaluation. These are people with multiple credentials from accrediting bodies whose sole career focus is business valuations. That’s all they do. Is your business worth the attention of a full-time business valuation expert?