Business Valuation
WHAT IS MY MANUFACTURING BUSINESS WORTH?
BUSINESS VALUATION METHODS
ASSET METHOD
Values your company’s assets minus liabilities. Typically, these values mean little to the market value of most businesses. The asset approach does not give an accurate representation of a business with positive earnings.
MARKET METHOD
Similar to a comparative real estate valuation. We have access to databases allowing us to research recent sales of similar businesses and develop a valuation. This method is a strong indicator of value.
INCOME METHOD
Uses the current income stream of your business to set a valuation. The income method is a strong indicator of the worth of a business with positive income. Assumes new owner will maintain current income level.
CONFIDENTIALITY MATTERS
The business valuation process is a private, personal, and professional exchange of information. We execute a Non-Disclosure and Confidentiality agreement with our clients when we work with them regarding the valuation of their businesses.
During a business valuation, information shared often includes Income Statements, Personal and Employee Salaries, Balance Sheets, Profit and Loss Statements, Inventory Asset lists, Debt, Business Growth Trajectory, and other highly sensitive information. This information is shared with us electronically via a secure portal after an NDA is signed with our office. We take protecting your confidential information seriously and maintain it rigorously through the valuation process and beyond.
BUSINESS VALUATION EXPERTS
Our business valuation advisors are experts in the valuation of privately-held companies. Our combination of experience, knowledge, and resources allows us to provide our clients with accurate and timely business valuations.
The process of business valuations follows many paths that vary from industry to industry. The foundation of understanding, however, is being able to recognize how a business develops best practices and uses its investments to maximize returns and future earnings.