Business Valuation

What Determines the Value of Your Business?
Do you want to sell business at optimal profit? Of course you do. The first thing you will have to do is business valuation. You will need an expert for this. A valuation expert is the person who will tell you how much your business is worth and what you can do to increase its value. To learn how to increase the value of your company, you need to know where its value comes from.

Profit generation
In business valuation, the valuator will pay special attention to the profits your firm is making. The more profitable the company is, the more valuable it will be. Profitable businesses are more attractive to buyers. This is because buyers want to buy a business that has already established itself in the market and one that promises the most returns. To increase your profits, you must reach out to your target market.

Market share
It is not easy to gain a market share but when you do, the value of your business will certainly flourish. A business valuation expert will look at the market share of your company. How do buyers respond to your brand? To gain a market share, you will need to do everything possible to attract clients and win their trust. You will achieve this by investing in ingenious sales and marketing strategies that will lure new business to you. This takes both time and money.

Intellectual property
As you do your own business valuation, do not forget about your intellectual property. Your intellectual property has a huge impact on the value of your business. Some of the areas you will have to focus on are trademarks, patents as well as inventions. All these assets are of interest to prospective buyers.

Brand and reputation
Your brand and reputation makes up the goodwill. If your company has a good reputation, then customers will have no problem transacting with you. Brand recognition will, further, add value to your business. With that in mind, then you know the best way to increase the value of your business is to work on your reputation.

Customer list and key clients
In business valuation, buyers will also be interested in your customer lists. There may be one buyer that the buyer wants to get into his books. If this is the case, you will be able to command a better deal when you sell business. Additionally, if you have won contracts that your competitors pitched for, you might not have any trouble finding a new buyer.

Products and services
The type of products and services you offer will affect the value of your business. If your products are on high demand and people cannot do without them, then the results of your business valuation will be quite impressive.

Other areas considered in business valuation include:

List of your suppliers
Competence of your employees
Location of your business

Getting a regular business valuation is a recommended practice. It will help you know the worth of your business and also help you know what you can do to increase that value.

What Client’s Say

We Couldn’t Be Happier

"When we thought about selling we had no idea what our business was worth or how to go about selling. What you were able to do was to cut through the fog so that we understood the valuation issue and had a comfort level with the process. As you know we ended up selling for somewhat more than the original valuation and we got all cash and our CPA loved the way our tax liability was minimized. We couldn’t be happier!"

Over $250,000 More

"Our first contact with you shocked us when you suggested that we wait 18 months before selling because you believed that if we hit our projections that the value would be significantly greater. As it turned out we not only followed your advice but also got slightly over $250,000 more than we originally had hoped for. It is seldom that we have had the opportunity to deal with a firm that doesn’t want both money and a commitment NOW. It was clear and obvious that you had our best interests at heart."

You Got the Valuation We Agreed On

"You did a great job on the sale of our business in really beating the bushes for buyers, including a UK company that was an active suitor. You managed to get the valuation that we had all agreed upon and got it substantially all in cash and got the transaction closed with little to no problems or expensive lawyers involved."

Thank You for Handling Our Business

"Our business was smaller than what your firm normally handles but it was a BIG part of our net worth and savings. Thank you for handling our business and we were very pleased and delighted with the results."

More Than Anticipated

"Our transaction was involved as we had different corporate entities located in different states. Our only regret is that we didn’t retain your services before 2012 when we paid $25,000 to a firm in Texas that did a valuation and market analysis for us before then failing to do anything in the way of trying to sell our business. You got it sold for more than anticipated."

Business Valuation

The Sales Process