Selling or Handing Down Your Business? You NEED to Know Its Value
Everyone who owns a business needs to know its value in today’s national and international marketplace. Having an independent business appraisal is vitally important if you are considering:
- Selling your business
- Bequeathing your business to a family member
- Looking for ways to increase the value of your business
LIBERTY BUSINESS ADVISORS of San Francisco Inc has a strategic relationship with respected business appraisal firms. These companies specialize in valuations of privately held companies by using Fortune 500 valuation techniques adapted for the privately held business market. They are two of the largest and most respected business appraisal firms and their appraisals are accepted by lenders such as the Small Business Administration, Bank of America, CIT, and Business Development Bank of Canada. They offer four types of business appraisals:
- Opinion of Value: A business valuation used for businesses with annual sales under $300,000.
- Value Analysis: Limited scope, small business valuations for “Main Street” businesses with sales between $300,000 and $1,000,000. The report is about 40 pages long and considers primarily historical and current performance.
- Formal Valuation: Also a limited scope valuation, this business asset appraisal is suitable for firms with sales between $1,000,000 and $3,000,000. About 70 pages long, the report emphasizes ratios, trends, and common size analysis. In addition to company earnings, the balance sheet will be a key component of this analysis.
- Mergers and Acquisitions (M & A) Value: A customized valuation, the fee depends on the type of business and the use of the business appraisal.
Your LIBERTY BUSINESS ADVISORS of San Francisco Inc broker will help you determine which business appraisal best suits your needs. The broker will also help you gather and package the necessary information for the appraisal prior to sending it to Gulf Coast or Business Valuation Canada.