Value Your Business At Nominal Cost With Detailed Reports
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Would you like to reassess your investments?
Do you have a real estate or a company that is not yielding results as expected?
Have you ever given a though what a business like yours would sell for?
All of the above are fair questions; pointing towards the need for business valuation. But focusing on your business valuation is like a hypertensive person focusing on his or her blood pressure report. To really understand the number–and to move it up or down–you have to understand business valuation detailed reports. Financial buyers acquiring a company will usually do some math to figure out what they are willing to pay today for the rights to your business’s future profits. However; business valuation means different things to different people.
The key elements determining business valuation:
- Growth potential
- Working capital
- Uniqueness of the business
- Owners involvement
- Scale potential
- Management capabilities
- Industry & economy
Reasons To Do Business Valuation
One of the best reasons is related to achieving the goals of the business owner. The owner typically has spent a career building the business, and has a vision for the company. That vision usually includes seeing the company survive as it passes to the next generation of owners.
There are several reasons for having a business valuation, and a few of the most common ones are listed:
- To set a basis of value for a business when no valuation has been previously performed.
- To understand the value (worth) of the business.
- To set a base line value for the business and develop a strategy to improve the profitability of the business and increase the value of the business for an exit strategy.
- To evaluate an offer and negotiate a strategic sale of a business.
- For exit strategy planning purposes.
- To value a portfolio of IP – patents, trademarks, copyrights, proprietary processes, etc.
- To justify the per share equity value in a company for annual shareholder meetings.
- To identify weaknesses in a business to refocus the operational efforts to improve profitability and the bottom line.
- For shareholder or partnership disputes.
- For shareholder or partnership investments or buyouts.
- To determine the potential built-in-capital-gains tax in a conversion from a C-Corporation to an S-Corporation.
- For financial reporting purposes – to allocate the purchase price to appropriate equity classes and determine if there is any goodwill impairment.
- To allocate the purchase price after an acquisition of a business.
- For estate tax reporting purposes of a decedent.
- To determine the value of the assets in a marital dissolution action.
- For litigation support purposes, to determine economic damages, lost profits, uncover fraud or value of a business in a shareholder or partnership dispute, IP damage from infringement or section 2000 minority shareholder action.
- To determine the intrinsic value of a business and assess whether it is different from the fair market value of the business.
- To identify whether the business is growing, stagnant or declining in value to restructure the business.
Whatever the reason for the valuation, it is important to recognize that there are rules and regulations that apply to different types of assignments. Engaging an experienced professional business valuation services which will help you define and achieve your goals.
BizEquity is the world’s largest provider of business valuations,
having valued 3,31,69,754 companies globally
The perspective of BizEquity is very simple:
BizEquity – The Global Leader in Business Valuation Services
“How much is my business worth” it is the most prevalent question ask by the business owners today, but the replies were never justified. Why they can ever answer. Before BizEquity only 2% of businesses knew their value..
BizEquity has created the first patented online service to help the over 200 Million global businesses around the world know what they are worth.
Business Valuation knowledge drives every major financial decision a business owner can make.
BizEquity was born from the learnings of a multi-billion dollar financial institution and a passionate founding team to help Democratise the most important financial knowledge in the world – your business value.
In helping to finance two entrepreneurs outside Buffalo, New York in the United States, it became apparent to our founder Michael M. Carter that private business owners did not have access to readily available business valuation data and insight. Mike made it his mission to expose this knowledge to help businesses make better decisions to protect their businesses, their families, and their dreams.
Methodologies Approached To Value Your Business Generated With Detailed Reports:
Asset-based business valuation methods
Sometimes referred to as the cost-based methods, these business valuation methods estimate the value of a business as the sum total of the costs required to create another business of equal economic utility.
Asset based business valuation methods are useful for accurate business purchase price allocation, an important element of structuring a business acquisition deal.
The central methods under the asset approach are these:
- Asset accumulation method
- Excess earnings method
Income-based business valuation methods
The income methods, as the name implies, determine the business value based on its income producing capacity and risk.
The main business valuation techniques used by these methods are capitalization and discounting. Business risk is captured in the form of discount and capitalization rates.
Income business valuation methods most commonly used in business appraisals are:
- Capitalization of earnings
- Multiple of discretionary earnings
- Discounted cash flow
Market-based business valuation methods
These methods help you estimate the subject business value by comparison to the recent selling prices of similar businesses.
Professional business appraisals often include these market valuation methods:
- Guideline publicly traded company method
- Comparative transaction method
Review Recent BizEquity’s News & Press here:
Business valuation and performance knowledge is the on-ramp question financial services firms want their clients and prospects to answer in order to generate more revenue. However, over time, the data generated by the BizEquity engine and the non-linear correlations and insight provided will help fuel risk and credit lending and underwriting models of tomorrow. Our goal is to help not only provide more powerful insight for financial services firms, but to level the playing field for the small businesses that power the economy. Insurance protection required; lending capacity needed; and optimal estate and financial planning recommendations, these will not just be the services that the 1% understand, but an insight that will be made available for all small businesses using BizEquity.
For detailed insights of the above click here
The Value Behind Small Business Valuations:
Small business owners tend to undervalue their business. All small businesses are run to be tax-efficient, as the owners work with their accountants to show the lowest amount of income possible to minimize what they owe in taxes.
I think this is one of the primary reasons that small business owners end up being under-insured. Not only have they not gone through the process of determining an accurate value for their business, they look at their tax form at the end of the year and think the numbers (which have been optimized to be as small as possible) are an accurate representation of the true earning power of their business.
Determining an accurate business value is something that every small business owner should do, no matter what the size of the business. Your business is probably worth more than you think. If you are interested in having your own business valued as part of the pilot program. To read in detail click here.
For more news from BizEquity click here
Business Valuation knowledge drives every major financial decision a business owner can make. If you are seeking BUSINESS VALUATION service, look no further.